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NELSON ALDRICH




itionetari Commission

MISCELLANY

Query: Why is this ancient statute alone responsible for the havoc, the injustice, and the misery
with which it is charged?
Because it unduly restricts the volume of legal
money, that which, because it is essential to the
distribution of the fruit of toil, is essential to human happiness!
To unduly restrict the volume of legal money is
to disarrange the industrial machinery of civilization. To cause a money shortage is to make the
followers of useful pursuits dependent upon the individual for a commercial device that is a necessity
to man in complex society. The act places the
producers of a nation at the mercy of the owners
of a scant money supply, and those who can furnish the commercial world with an available credit
substitute.
To unduly restrict the volume of legal money,
therefore, is to enable a few to unjustly reap the
fruit of toil by exacting legalized tribute from the
many for the use of an artificial device that is as
essential to the distribution of wealth as labor is to
its production.
In this inherited statute, therefore, we discover
the primary and sustaining cause of our every
economic ill. To amend the law in the manner we
suggest is to make poverty impossible by instituting a normal iudustrial condition. The proposed
amendment alone will give the fruit of toil to those
who create it—because it will cut off the present
unjust income of the nonproducer. Very respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., June, 1909.
Read "THE DISTURBING FACTOR IN HUMAN
tt post—
AFFAIRS," By James D. Holden. i
Currency
paid for 25c. Address Secretary La
League, 231 Kittredge Bldg. Denver, lorado.




THE MONEY SHORTAGE
Its Magnitude and Blighting Influence
Supplemental Communication No. 4.
The Land Currency League
Hon. Henry M. Teller,
Hon. Robert W. Bonynge.
Colorado members of United States Monetary
Commission.
Gentlemen: The purpose of the financial measure we are advocating is not merely to reduce the
cost of currency to borrowers—it is to obviate the
necessity of borrowing. It aims to call such a volumn of money into existence for the use of the
commercial world that A's money will not be required to "finance" B's enterprise.
The purpose of the measure is to deprive A of
the power to exact "interest" from B for the use
of an available representative of wealth. We accomplish this by giving B the right to obtain from
the state, on application, a currency representative
of the wealth he is now compelled to pledge as security to A in, order to obtain a circulating medium.
Obviously the welfare of society demands a volumn of money sufficient to employ its full powers
of production, and to conserve in tangible form the
savings of those engaged in useful pursuits. With
such a volumn in existence the industrious will acquire and own the money necessary to prosecute
their undertakings.

Money users are now compelled to borrow because of a money shortage. The state does not
create enough money to answer the needs for money.
The present supply is more than $12,000,000,000
short-of the sum required to conserve in money the
savings of those engaged in useful avocations.
A money shortage not only enables those who
have a surplus to exact for its use a form of tribute
called "interest," but it enables financiers to reap
the fruit of toil by supplying their neighbors with
a credit substitute for cash—an intangible makeshift which commands an interest rate in the market equal to, that exacted for the use of gold and
silver coins.
The blighting Money shortage, which has afflicted
civilized man for so many centuries, is not, in fact,
due to the machinations of designing men, but to a
false economic belief that is common to rich and
poor Alike—a belief that we cannot supply our
money deficit without impairing the so-called
"value" of the money unit---a belief which, analyzed, proves to be founded on an absurd assumption,
namely:
That prices under our present scant money volume are normal and a measure that would provide
a sufficiency would beget abnormal prices.
Obviously the inauguration of a rational money
system cannot be expected so long as our legislators and financial guides are influenced by this preposterous belief.
The credit constituent of our present circulating
medium of cash and bank credit indicates the extent of the money shortage as related to our present
restricted volume of business. As stated, it exceeds $12,000.000,000.
Ours is an automatic plan for supplying this deficit. We suggest a feasible and scientific system
that can be inaugurated without disarranging business or disturbing prices.
We gain the end by substituting legal-tender
paper for the intangible ingredient of our present
circulation.




4t
We right our wrongs and brings order out of
chaos by a single rational act, namely: By making
the money supply equal our commercial needs!
The system we propose will require money owners
to invest their surplus funds in industrial enterprises if they would have them yield an income—enterprises that will create a wholesome demand for all
forms of labor. Such a system will compel the
money owner to contract for the labor necessary
to make his money yield an income; and this new
call for labor will enable the worker to demand and
receive his full share of the joint product, where
now his necessities compel him to accept a wage
in the determination of which he has no voice.
It is a singular fact that mvii are rare who perceive
that it is possible to abolish 'poverty from among
the industrious by the single act of perfecting our
money system. Failure to recognize this vital
truth is due to a common lack of knowledge as to
the underlying cause of our economic ills. Only
those who perceive that the evils of which we complain are traceable to a single cause realize that a
single remedy can effect a complete cure.
The argument that sustains our claim that all
economic ills are traceable to a single cause is
based on the following facts, viz:
Ages ago--probably under the first civil government having powers defined by written laws—an
act was passed whose blighting influences upon the
destiny of the individual was unforeseen by those
responsible for it, and has remained undiscovered
to the present day. This baneful statute—the evil
effect of which has escaped the scrutiny of the
student of social science—has been bequeathed by
government to government during the intervening
centuries, and is today a fundamental law of every
• civilized nation of the earth.
This silent law—which alone prevents a just division of roduct—is the law which for ages has
confined
volume of legal money to the coinage
of the precious metals!

Query: Why is this ancient statute alone responsible for the havoc, the injustice, and the misery
with which it is charged?
Because it unduly restricts the volume of legal
money, that which, because it is essential to the
distribution of the fruit of toil, is essential to human happiness!
To unduly restrict the volume of legal money is
to disarrange the industrial machinery of civilization. To cause a money shortage is to make the
followers of useful pursuits dependent upon the individual for a commercial device that is a necessity
to man in • complex society. The act places the
producers of a nation at the mercy of the owners
of a scant money supply, and those who can furnish the commercial world with an available credit
substitute.
To unduly restrict the volume of legal money,
therefore, is to enable a few to unjustly reap the
fruit of toil by exacting legalized tribute from the
many for the use of an artificial device that is as
essential to the distribution of wealth as labor is to
its production.
In this inherited statute, therefore, we discover
the primary and sustaining cause of our every
economic ill. To amend the law in the manner we
suggest is to make poverty impossible by instituting a normal iudustrial condition. The proposed
amendment alone will give the fruit of toil to those
who create it--because it will cut off the present,
unjust income of the nonproducer. Very respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
•
Committee.
Denver, Colo., June, 1909.
Read "THE DISTURBING FACTOR IN HUMAN
AFFAIRS," By James D. Holden. Sent post—
paid for 25c. Address Secretary Land Currency
League, 231 Kittredge Bldg. Denver, Colorado.




THE MONEY SHORTAQE
Its Magnitude and Blighting Influence
Supplemental Communication No. 4.
The Land Currency League
to
Hon. Henry M. Teller,
Hon. Robert W. Bonynge.
Colorado members of United States Monetary
Commission.
Gentlemen: The purpose of the financial measure we are advocating is not merely to reduce the
cost of currency to borrowers—it is to obviate the
necessity of borrowing. It aims to call such a volumn of money into existence for the use of the
commercial world that A's money will not be required to "finance" B's enterprise.
The purpose of the measure is to deprive A of
the power to exact "interest— from B for the use
of an available representative of wealth. We accomplish this by giving B the right to obtain from
the state, on application, a currency representative
of the wealth he is now compelled to pledge as security to A in, order to obtain a circulating medium.
Obviously the welfare of society demands a volumn of money sufficient to employ its full powers
of production, and to conserve in tangible form the
savings of those engaged in useful pursuits. With
such a volumn in existence the industrious will acquire and own the money necessary to prosecute
their undertakings.

Mo'ney users are now compelled to borrow because of a money shortage. The state does not
create enough money to answer the needs for money.
The present supply is more than $12,000,000,000
short.of the sum required to conserve in money the
savings of those engaged in useful avocations.
A money shortage not only enables those who
have a surplus to exact for its use a form of tribute
called "interest," but it enables financiers to reap
the fruit of toil by supplying their neighbors with
a credit substitute for cash—an intangible makeshift which commands an interest rate in the market equal to that exacted for the use of gold and
silver coins.
The blighting money shortage, which has afflicted
civilized man for so many centuries, is not, in fact,
due to the machinations of designing men, but to a
false economic belief that is common to rich and
poor alike—a belief that we cannot supply our
money deficit without impairing the so-called
"value" of the money unit -a belief which, analyzed, proves to be founded on an absurd assumption,
namely:
That prices under our present scant money volume are normal. and a measure that would provide
a sufficiency would beget abnormal prices.
Obviously the inauguration of a rational money
system cannot be expected so long as our legislators and financial guides are influenced by this preposterous belief.
The credit constituent of our present circulating
medium of cash and bank credit indicates the extent of the money shortage as related to our present
restricted volume of business. As stated, it exceeds $12,000,000,000.
Ours is an automatic plan for supplying this deficit. We suggest a feasible and scientific system
that can be inaugurated without disarranging business or disturbing prices.
We gain the end by substituting legal-tender
paper for the intangible ingredient of our present
circulation.




We right our wrongs and brings order out of
chaos by a single rational act, namely: By making
the money supply equal our commercial needs!

•

The system we propose will require money owners
to invest their surplus funds in industrial enterprises if they would have them yield an income—enterprises that will create a wholesome demand for all
forms of labor. Such a system will compel the
money owner to contract for the labor necessary
to make his money yield an income; and this new
call for labor will enable the worker to demand and
receive his full share of the joint product, where
now his necessities compel him to accept a wage
in the determination of which he has no voice.
It is a singular fact that men are rare who perceive
that it is possible to abolish poverty from among
the industrious by the single act of perfecting our
money system. Failure to recognize this vital
truth is due to a common lack of knowledge as to
the underlying cause of our economic ills. Only
those who perceive that the evils of which we complain are traceable to a single cause realize that a
single remedy can effect a complete cure.
The argument that sustains our claim that all
economic ills are traceable to a single cause is
based on the following facts, viz:
Ages ago--probably under the first civil government having powers defined by written laws— an
act was passed whose blighting influences upon the
destiny of the individual was unforeseen by those
responsible for it, and has remained undiscovered
to the present day. This baneful statute—the evil
effect of which has escaped the scrutiny of the
student of social science— has been bequeathed by
government to government during the intervening
centuries, and is today a fundamental law of every
civilized nation of the earth.
This silent law- which alone prevents a just division of product—is the law which for ages has
confined the volume of legal money to the coinage
of the precious metals!

Query: Why is this ancient statute alone responsible for the havoc, the injustice, and the misery
with which it is charged?
Because it unduly restricts the volume of legal
money, that which, because it is essential to the
distribution of the fruit of toil, is essential to human happiness!
To unduly restrict the volume of legal money is
to disarrange the industrial machinery of civilization. To cause a money shortage is to make the
followers of useful pursuits dependent upon the individual for a commercial device that is a necessity
to man in complex society. The act places the
producers of a nation at the mercy of the owners
of a scant money supply, and those who can furnish the commercial world with an available credit
substitute.
To unduly restrict the volume of legal money,
therefore, is to enable a few to unjustly reap the
fruit of toil by exacting legalized tribute from the
many for the use of an artificial device that is as
essential to the distribution of wealth as labor is to
its production.
In this inherited statute, therefore, we discover
the primary and sustaining cause of our every
economic ill. To amend the law in the manner we
suggest is to make poverty impossible by instituting a normal industrial condition. The proposed
amendment alone will give the fruit of toil to those
who create it—because it will cut off the present
unjust income of ,the nonproducer. Very respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Cob., June, 1909.
Read "THE DISTURBING FACTOR IN HUMN
AFFAIRS," By James D. Holden. Sent postpaid for 25c. Address Secretary Land Currency
League, 231 Kittredge Bldg. Denver, Colorado.




so

THE MONEY SHORTAGE
•

Its Magnitude and Blighting Influen( e
Supplemental Communication No. 4.
The Land Currency League
•
to

Hon. Henry M. Teller,
Hon. Robert W. Bonynge.
Colorado members of United States Monetary
Commission.
Gentlemen: The purpose of the financial measure we are advocating is not merely to reduce the
cost of currency to borrowers—it is to obviate the
necessity of borrowing. It aims to call such a volumn of money into existence for the use of the
commercial world that A's money will not be required to "finance",B's enterprise.
The purpose of the measure is to deprive A of
the power to exact "interest" from B for the use
of an available representative of wealth. We accomplish this by giving B the right to obtain from
the state, on application, a currency representative
of the wealth he is now compelled to pledge as security to A in, order to obtain a circulating medium.
Obviously the welfare of society demands a yolumn of money sufficient to employ its full powers
of production, and to conserve in tangible form the
savings of those engaged in useful pursuits. With
such a volumn in existence the industrious will acquire and own the money necessary to prosecute
their undertakings.

Money uscrs are now compelled to borrow because of a money shortage. The state does not
create enough money to answer the needs for money.
The present supply is more than $12,000,000,000
shortcut the sum required to conserve in money the
savings of those engaged in useful avocations.
A money shortage not only enables those who
have a surplus to exact for its use a form of tribute
called "interest," but it enables financiers to reap
the fruit of toil by supplying their neighbors with
a credit substitute for cash—an intangible makeshift which commands an interest rate in the market equal to that exacted for the use of gold and
silver coins.
•
The blighting money shortage, which has afflicted
civilized man for so many centuries, is not, in fact,
due to the machinations of designing men, but to a
false economic belief that is common to rich and
poor alike—a belief that we cannot supply our
money deficit without impairing the so-called
"value" of the money unit- a belief which, analyzed, proves to be founded on an absurd assumption,
namely:
That prices under our present scant money volume are normal. and a measure that would provide
a sufficiency would beget abnormal prices.
Obviously the inauguration of a rational money
system cannot be expected so long as our legislators and financial guides are influenced by this preposterous belief.
The eredit constituent of our present circulating
medium of cash and bank credit indicates the extent of the money shortage as related to our present
restricted volume of business. As stated, it exceeds $12,000,000,000.
Ours is an automatic plan for supplying this deficit. We suggest a feasible and scientific system
that can be inaugurated without disarranging business or disturbing prices.
We gain the end by substituting legal-tender
paper for the intangible ingredient of our present
circulation.




We right our wrongs and brings order out of
chaos 4_2 single rational act, namely: By making
the money supply equal our commercial needs!
The system we propose will require money owners
to invest their surplus funds in industrial enterprises if they would have them yield an income—enterprises that will create a wholesome demand for all
forms of labor. Such a system will compel the
money owner to contract for the labor necessary
to make his money yield an income; and this new
call for labor will enable the worker to demand and
receive his full share of the joint product, where
now his necessities compel him to accept a wage
in the determination of which he has no voice.
It is a singular fact that men are rare who perceive
that it is possible to abolish poverty from among
the industrious by the single act of perfecting our
money system. Failure to recognize this vital
truth is due to a common lack of knowledge as to
the underlying cause of our economic ills. Only
those who perceive that the evils of which we complain are traceable to a single cause realize that a
single remedy can effect a complete cure.
The argument that sustains our claim that all
economic ills are traceable to a single cause is
based on the following facts, viz:
Ages ago probably under the first civil government having powers defined by written laws- an
act was passed whose blighting influences upon the
destiny of the individual was unforeseen by those
responsible for it, and has rematned undiscovered
to the present day. This baneful statute—the evil
effect of which has escaped the scrutiny of the
student of social science- has been bequeathed by
government to government during the intervening
centuries, and is today a fundamental law of every
civilized nation of the earth.
This silent law which alone prevents a just division of product -is the law which for ages has
confined the volume of legal money to the coinage
of the precious metals!

Query: Why is this ancient statute alone responsible for the havoc, the injustice, and the misery
with which it is charged?
Because it unduly restricts the volume of legal
money, that which, because it is essential to the
distribution of the fruit of toil, is essential to human happiness!
To unduly restrict the volume of legal money is
to disarrange the industrial machinery of civilization. To cause a money shortage is to make the
followers of useful pursuits dependent upon the individual for a commercial device that is a necessity
to man in complex society. The act places the
producers of a nation at the mercy of the owners
of a scant money supply, and those who can furnish the commercial world with an available credit
substitute.
To unduly restrict the volume of legal money,
therefore, is to enable a few to unjustly reap the
fruit of toil by exacting legalized tribute from the
many for the use of an artificial device that is as
essential to the distribution of wealth as labot is to
its production.
In this inherited statute, therefore, we discover
the primary and sustaining cause of our every
economic ill. To amend the law in the manner we
suggest is to make poverty impossible by instituting a normal iudustrial condition. The proposed
amendment alone will give the fruit of toil to those
who create it--because it will cut off the present
unjust income of the nonproducer. Very respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., June, 1909.
Read "THE DISTURBING FACTOR IN HUMAN
AFFAIRS," By James D. Holden. Sent post-paid for 25c. Address Secretary Land Currency
League, 231 Kittredge Bldg. Denver, Colorado.




THE MONEY SHORTAGE
Its Magnitude and Blighting Influence
Supplemental Communication No. 4.
The Land Currency League
to

Hon. Henry M. Teller,
Hon. Robert W. Bonynge.
Colorado members of United States Monetary
Commission,
Gentlemen: The purpose of the financial measure we are advocating is not merely to reduce the
cost of currency to borrowers—it is to obviate the
necessity of borrowing. It aims to call such a volumn of money into existence for the use of the
commercial world that A's money will not be required to "finance" B's enterprise.
The purpose of the measure is to deprive A of
the power to exact "interest" from B for the use
of an available representative of wealth. We accomplish this by giving B the right to obtain from
the state, on application, a currency representative
of the wealth he is now compelled to pledge as security to A in, order to obtain a circulating medium.
Obviously the welfare of society demands a volumn of money sufficient to employ its full powers
of production,. and to conserve in tangible form the
savings of those engaged in useful pursuits. With
such a volumn in existence the industrious will acquire and own the money necessary to prosecute
their undertakings.

•41)
Money users are now compelled to borrow because of a money shortage. The state does not
creatf! enough money to answer the needs for money.
The present supply is more than $12,000,000,000
short of the sum required to conserve in money the
savings of those engaged in useful avocations.
A money shortage not only enables those who
have a surplus,to exact for its use a form of tribute
called "interest," but it enables financiers to reap
the fruit of toil by supplying their neighbors with
a credit substitute for cash—an intangible makeshift which commands an interest rate in the market equal to that exacted for the use of gold and
silver coins.
The blighting money shortage, which has afflicted
civilized man for so many centuries, is not, in fact,
due to the machinations of designing men, but to a
false economic belief that is common to rich and
poor alike—a belief that we cannot supply our
money deficit without impairing the so-called
"value" of the money unit -a belief which, analyzed, proves to be founded on an absurd assumption,
namely:
That prices under our present scant money volume are normal. and a measure that would provide
' a sufficiency would beget abnormal prices.
Obviously the inauguration of a rational money
system cannot be expected so long as our legislators and financial guides are influenced by this preposterous belief.
The credit constituent of our present circulating
medium of cash and bank credit indicates the extent of the money shortage as related to our present
restricted volume of business. As stated, it exceeds $12,000,000,000.
Ours is an automatic plan for supplying this deficit. We suggest a feasible and scientific system
. that can be inaugurated without disarranging business or disturbing prices.
We gain the end by substituting legal-tender
paper for the intangible ingredient of our present
circulation.




We right our wrongs and brings order out of
chaos by a sinte rational act, namely: By making
the money supply equal our commercial needs!
The system we propose will require money owners
to invest their surplus funds in industrial enterprises if they would have them yield an income—enterprises that will create a wholesome demand for all
forms of labor. Such a system will compel the
money owner to contract for the labor necessary
to make his money yield an income; and this new
call for labor will enable the worker to demand and
receive his full share of the joint product, where
now his necessities compel him to accept a wage
in the determination of which he has no voice.
It is a singular fact that men are rare who perceive
that it is possible to abolish poverty from among
the industrious by the single act of perfecting our
money system. Failure to recognize this vital
truth is due to a common lack of knowledge as to
the underlying cause of our economic ills. Only
those who perceive that the evils of which we complain are traceable to a single cause realize that a
single remedy can effect a complete cure.
The argument that sustains our claim that all
economic ills are traceable to a single cause is
based on the following facts, viz:
Ages ago—probably under the first civil government having powers defined by written laws—an
act was passed whose blighting influences upon the
destiny of the individual was unforeseen by those
responsible for it, and has remained undiscovered
to the present day. This baneful statute—the evil
effect of which has escaped the scrutiny of the
student of social science—has been bequeathed by
government to government during the intervening
centuries, and is today a fundamental law of every
civilized nation of the earth.
This silent law—which alone prevents a just division of product—is the law which for ages has
confined the volume of legal money to the coinage
of the precious metals!

Query: Why is this ancient statute alone responsible for the havoc, the injustice, and the misery
with which it is charged?
Because it unduly restricts the volume of legal
money, that which, because it is essential to the
distribution of the fruit of toil, is essential to human happiness!
To unduly restrict the volume of legal money is
to disarrange the industrial machinery of civilization. To cause a money shortage is to make the
followers of useful pursuits dependent upon the individual for a commercial device that is a necessity
to man in complex society. The act places the
Producers of a nation at the mercy of the owners
of a scant money supply, and those who can furnish the commercial world with an available credit
substitute.
To unduly restrict the volume of legal money,
therefore, is to enable a few to unjustly reap the
fruit of toil by exacting legalized tribute from the
many for the use of an artificial device that is as
essential to the distribution of wealth as labor is to
its production.
In this inherited statute, therefore, we discover
the primary and sustaining cause of our every
economic ill. To amend the law in the manner we
suggest is to make poverty impossible by instituting a normal iudustrial condition. The proposed
amendment alone will give the fruit of toil to those
who create it—because it will cut off the present
unjust income of the nonproducer. Very respectfully.
CHARLES M. RICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., June, 1909.
Read "THE DISTURBING FACTOR IN HUMAN
AFFAIRS," By James D. Holden. Sent post—
paid for 25c. Address Secretary Land Currency
League, 231 Kittredge Bldg. Denver, Colorado.




THE MONEY SHORTAGE
Its Magnitude and Blighting Influence
Supplemental Communication No. 4.
The Land Currency League
to

Hon. Henry M. Teller,
Hon. Robert W. Bonynge.
Colorado members of United States Monetary
Commission.
Gentlemen: The purpose of the financial measure we are advocating is not merely to reduce the
cost of currency to borrowers—it is to obviate the
necessity Qf borrowing. It aims to call such a volumn of money into existence for the use of the
commercial world that A's money will not be required to "finance" B's enterprise.
The purpose of the measure is to deprive A of
the power to exact 'interest"•from B for the use
of an available representative of wealth. We accomplish this by giving B the right to obtain from
the state, on application, a currency representative
of the wealth he is now compelled to pledge as security to A in, order to obtain a circulating medium.
Obviously the welfare of society demands a volumn of money sufficient to employ its full powers
of production, and to conserve in tangible form the
savings of those engaged in useful pursuits. With
such a volumn in existence the industrious will acquire and own the money necessary to prosecute
their undertakings.

Money users are now compelled to borrow because of a mon'ey shortage. The state does not
create enough money to answer the needs for money.
The present supply is more than $12,000,000,000
short of the sum required to conserve in money the
savings of those engaged in useful avocations.
A ,money shortage not only enables those who
have a surplus to exact for its use a form of tribute
called "interest," but it enables financiers to reap
the fruit of toil by supplying their neighbors with
a credit substitute for cash—an intangible makeshift which commands an interest rate in the market equal to that exacted for the use of gold and
silver coins.
The blighting money shortage, which has afflicted
civilized man for so many centuries, is not, in fact,
due to the machinations of designing men, but to a
false economic belief that is common to rich and
poor alike--a belief that we cannot supply our
money deficit without impairing the so-called
"value" of the money unit—a belief which, analyzed, proves to be founded on an absurd assumption,
namely:
That prices under our present scant money volume are normal. and a measure that would provide
a sufficiency would beget abnormal prices.
Obviously the inauguration of a rational money
system cannot be expected so long as our legislators and financial guides are influenced by this preposterous belief.
The credit constituent of our present circulating
medium' of cash and bank credit indicates the extent of the money shortage as related to our present
restricted volume of business. As stated, it exceeds $12,000,000,000.
Ours is an automatic plan for supplying this deficit. We suggest FL feasible and scientific system
that can be inaugurated without disarranging business or disturbing prices.
We gain the end by substituting legal-tender
paper for the intangible ingredient of our present
circulation.




We right our wrongs and brings order out of
chaos by a single rational act, namely: By making
the money supply equal our commercial needs!

•

The system we propose will require money owners
to invest their surplus funds in industrial enterprises if they would have them yield an income—enterprises that will create a wholesome demand for all
forms of labor. Such a system will compel the
money owner to contract for tile labor necessary
to make his money yield an income; and this new
call for labor will enable the worker to demand and
receive his full share of the joint product, where
now his necessities compel him to accept a wage
in the determination of which he has no voice.
It is a singular fact that men are rare who perceive
that it is possible to abolish poverty from among
the industrious by the single act of perfecting our
money system. Failure to recognize this vital
truth is due to a common lack of knowledge as to
the underlying cause of our economic ills. Only
those who perceive that the evils of which we complain are traceable to a single cause realize that a
single remedy can effect a complete cure.
The argument that sustains our claim that all
economic ills are traceable to a single cause is
based on the following facts, viz:
Ages ago—probably under the first civil government having powers defined by written laws—an
act was passed whose blighting influences upon the
destiny of the individual was unforeseen by those
responsible for it, and has remained undiscovered
to the present day. This baneful statute—the evil
effect of which has escaped the scrutiny of the
student of social science--has been bequeathed by
government to government during the intervening
centuries, and is today a fundamental law of every
civilized nation of the earth.
This silent law which alone prevents a just division of product is the law which for ages has
confined the volume of legal money to the coinage
of the precious metals!

COSTLESS CURRENCY
alone will insure a just division of product.
It solves the problem of distribution!
Nothing is more certain than that poverty among the industrious is the inevitable effect of our preposterous currency system.

e OSTLESS
4
URRENCY.

A NEW MONEY SYSTEM

YOU HAVE READ
this argument which, if true, means so
much to you, to yours, and to us all.
If you are impressed with its logic, and
believe beneficial results would follow a
general discussion of the simple remedy
proposed, and are willing to aid in disseminating the new idea :we Send 25c to the Secretary of THE
LAND CURRENCY LEAGUE, 231 Kittredge Bldg., Denver, Colo., and you will
receive, post-paid, 10 copies of this argument for distribution among your thinking
friends.

Under Consideration By
The

NATIONAL CURRENCY
COMMISSION.

Issued By
THE LAND CURRENCY LEAGUE.

COSTLESS CURRENCY IS THE WAY OUT!
United Effort Will Bring It!




HELP SOW THE SEEM

Denver, Colorado.

To

With Compliments of

ow "Put a shoulder to the wheel."

T




—•

et
,— •

—•




This pamphlet contains the argument
addressed to the U. S. Monetary Commission* by the Land Currency League of the
city of Denver, elucidating a new, but feasible and scientific method of providing
national currency by a system that will automatically supply every legitimate demand for money.
The argument consists of an address and
three supplemental communications to the
Colorado members of the National Commission, Messrs. Teller and Bonynge, of
Denver.

*The Commission appointed by the 60th Congress
to discover the defects in our currency system consists of Senators Aldrich, Burrows, Daniels, Hale,
Knox, Money, Teller; Representatives Bonynge,
Burton, (0) Overstreet, Padgett, Pugo, Smith,
(Calif.) Vreeland, Weeks, and See'y Shelton of the
Senate Finance Committee.

1

ADDRESS
Delivered by James D. Holden, of the Land Cur_ rency League, to the Colorado Members of the Commission.
Gentlemen:
We are a delegation appointed by The Land
Currency League to present for your consideration what we believe to be a correct theory of
currency. Our purpose in seeking this audience
Is to impress you with its importance, and to
convince you, if possible, that at last we have
the true solution of the currency problem.
Our conclusions are the result of an investigation of the subject, covering a period of many
years, prosecuted along a new line of research.
They prove conclusively that the knowledge of
the most enlightened legislators of the age concerning the science of money is of the most
superficial character.
This conclusion is in a manner justified by
the fact that after a national existence of upward of 116 3-ears, we find ourselves embarrassed
by a fiscal system that is unequal to the task
of employing our full powers of production, of
equitably distributing the fruit of industry, or of
preventing a frequent recurrence of disastrous
financial panics.
We cannot hope in a single interview to convince you of the validity of our theory. To elucidate it requires a great deal of argument on our
part and a great deal of reflection on the par(
of those to whom it is presented, but with your
permission 1 will briefly outline the new philos
()idly and give the reasoning upon which our most
romarkable claim is based.
We claim that society needlessly pays interest for the use of a circulating medium; and that
the compulsory practice of compensating the infli
vidual for the use of currency is avoidable.




2

Our contention is that owners of wealth t-71.
1ould
not compel themselves to compensate the i,ndividual for the use of a legal-tender representative
of wealth; and that they would avoid the present interest charge could they obtain from the
state, on application, a legal-tender representative of the wealth they now pledge as security
to the usurer.
We claim that our every economic ill is due
to the fact that we unduly restrict the volume
of money.
Instead of supplying ourselves with a currency
volume equal to our requirements, we so restrict
the issue that a private substitute for money is
required to assist in effecting our exchanges.
Statistics show that fully 95 per cent of recorded
exchanges are made with a credit substitute.
All money provided by the state for commercial purposes is supplied to the recipients without interest, while the cost to society of the
credit substitute (which we are compelled to use
because of the money shortage) actually absorbs
the surplus earnings of industry.*
Our failure to apply the true remedy is largely
due to a common belief that the value of money,
like that of a commodity, is determined by the
economic law of supply and demand, and that
to materially increase the money volume is to
impair the value of the money unit.
An unwarranted fear of a depreciated currency prohibits a sufficient volume of money, and
thus prevents a just division of product..
An exhaustive investigation satisfies us that
absolute money—paper or specie—does not, in
fact, fluctuate in value, but that it reflects and
reprosents the fluctuating value of the articles
for which it is exchanged. Hence were legaltender paper issued for currency purposes only
against individual wealth, the supply may equal
See rude A Appendix.

our commercial requirements without fear of dopreciation.
It is true that rising prices frequently follow
a material increase in the volume of the circulatin&• medium, but this phenomenon occurs only
when the volume is less than the amount required to perfectly perform the money office—
a fact that has escaped the scrutiny of the financial student.
The result, therefore, is not due to a cheapening of the money unit, but to a natural increase
in the value of certain commodities; commodities
for which there is an increased demand; demand
horn of a new ability to purchase.
This view is sustained by the fact that the
advance in price is not only confined to articles
for which there is an increased demand, but it is
temporary, for the secondary effect of a new
money issue is to so stimulate the production of
articles whose value is enhanced that prices will
become normal when the new demand is satisfied.
We claim that quality, not quantity, determines
the value of money.
Regardless, however, of what is known as the
"quantitative" theory of money, we claim that
the currency volume may safely he increased
to the extent we propose. because the measure
we suggest would simply substitute one form of
circulating medium for another (cash for credit)
without augmenting the volume of that with which
our business is now transacted, and therefore
would not disturb prices.
The only persons who can now call new money
into existence to meet the demands of an expanding commerce, are owners of wealth in the
form of gold bullion and United States bonds.
All other wealth-owners are unwisely denied the
essential privilege of monetizing!, their wealth for
curreney pnrposes by the certificate process. The
result is an enormous currency deficit of not




4

less than twelve billion dollars, as shown by the
last Report of the Comptroller of the Currency.
This report shows that our circulation now
consists of public money and bank-credit—about
one part money and five parts credit: public
money provided by the state at a nominal cost
to the recipient, and hank credit, provided by
financiers at burdensome rates of interest.
We propose to cure our financial ills by substituting cash for the credit constituent of our circulating medium. This can be done, we claim,
without departing from the present method of
supplying currency for commercial purposes.
We propose to extend the privilege of calling
new money into existence (which is now exercised exclusively by owners of gold bullion and
national bonds) to the owners of productive real
estate—our most stable form of wealth.
The underlying principle of the proposed system is that all forms of wealth are equally entitled to currency representation in the nation's
circulation on application of the owner.
We claim, however, that the interests of society will be as well served, and the system simplified, by confining the currency issue to owners
of stable, or permanent, forms of wealth.
To monetize LAND VALUES, we claim, will
dostrov the eyisting currency monopoly, and tile
indirect benefit to all will equal the direct benefit inuring to the currency recipient, because the
terms upon which legalized certificates will be
issued to land owners, on demand, will determine
the usurer's charge for the use of private funds,
and the credit substitute, should there be a demand therefor.
The new system assumes that the legal-tender
function alone sustains the value of money; that
commodity value has nothing whatever to do in
sustaining the money value of legal-tender currency; that money is a legislative device whose
value as an exchange medium necessarily equals
Its value for discharging contract obligations.

Evidence of the validity of this principle is
found in the fact that gold coin would not circulate at par for a moment were it divested of
its debt-paying power, and that our standard silver coins circulate at par for the reason alone
that they are invested by law with the legaltender quality. It is obvious, therefore, that the
legal-tender attribute is the money attribute of
a nation's currency—whether paper, silver or gold.
Ours is not a proposition to "loan money on
land," nor to "base" money on real estate. It is
an automatic method of providing just the amount
of currency required by a direct issue to money
users, on demand, of a legal-tender representative
of their wealth.
As our congressional representatives, and as
members of the recently appointed Monetary Commission, we ask you to thoroughly investigate
this new theory, and especially our claim that
real money does not fluctuate in value. To realize this momentous truth is to perceive that a
legal-tender representative of wealth may with
advantage and entire safety be issued, on application, to the owners of stable forms of wealth
at cost of issue.
WO entinot but believe that the appointment
at this time of a Monetary Commission to whose
searching scrutiny this revelation in economics
can be submitted will prove of the greatest possible benefit to the human family.
We have fmniulated a measure, of which we
will furnish you copies, embodying our recommcndations which sets forth a plan for carrying
them into effect.
We trust that upon reflection you may see
your way clear to commend this promising theory,
and the simple remedy we suggest, as worthy the
serious consideration of the Monetary Commis.
sioti.




6

SUPPLEMENTAL COMMUNICATION NO 1.
(This paper was prepared for the purpose of refutinl: the
gcncrally accepted quantitative" theory of money.)

Hon. Henry M. Teller,
Hon. Robert W. Bonynge,
Members U. S. Monetary Commission
Gentlemen:
In the opinion of the members of The Land
Currency League, the chief obstacle in the way
of perfecting our money system is the belief that
the exchange value of a nation's circulating medium is regulated by its volume; and that to materially increase the money volume is to impair the value of the money unit.
13elief in this — the quantitative — theory of
money, in our judgment, is not only incompatible
with a correct understanding of the character of
money, but its blighting influence on the destiny
of the individual is incalculable, for the reason
that it prevents the mind from perceiving a momentous economic truth, namely:
That absolute money does not fluctuate in
value!*
The need of the hour, in our opinion, is an
argument that will expose the fallacy of this
accepted belief, and we beg leave to submit for
your consideration the reasoning which justifies
the conclusion that the quantitative theory of
niolicy is false, misleading and pernicious.
In defining the theory, John Stuart Mill, in
his "Principles of Political Economy," says:
"If the whole money in circulation was doubled,
prices would double. If it was increased one-fourth,
prices would increase one-fourth. * * * So that the
value of money—all other things remaining the same—
varies inversely as its quantity; every increase in
quantity lowering its value, and every diminution raising it in a ratio exactly equivalent."

David Ricardo, an eminent English authority,
says:
"The value of money in any country is determined
by the amount existing. That commodities would rise
or fall in price in proportion to the increase or diminution of money, I assume as a fact that is incontrovertible."

Notwithgtanding the high character of these
distinguished economists and the respect to which
their opinions are entitled, we assert that their
conclusions cannot be verified.*
The following is the reasoning upon which we
rely for a justification of our contention:
Recause rising prices usually follow a material increase in the volume of money, economists
have erroneously concluded that the result is
due to a cheapening of the money unit. In other
words: that a rise in prices is the direct result
of an augmented money volume. In fact, however,
rising prices are due to increased demand, resultinf.; from an increased ability of the recipients
of the new currency to gratify their wants.
In justification of this conclusion we point to
the fact that a rise in the price of all commodities
does not follow an increase in the money volume; that only those commodities increase in
value for which there is an increased demand:
that the mere existence of new money cannot
affect prices, because there can be no rise in the
price of any form of property until tlw new demand affects the available supply.
Were the quantitative theory true, the price
of all property would rise in response to a new
money issue, regardless of supply and demand.
for if "volume determines price," as the advocates
of this theory claim, the augmented money volume would advance the value of articles for
which there would be no unusual demand to the
same extent that it would raise the price of articles the demand for which would exceed the supply. Surely something besides the unsupported
opinion of eminent economists is necessary to sustain so unreasonable a theory. The claim that
"prices are determined by the volume of money,
is inconsistent with the fact that they are determined by the economic law of supply and demand—a truth accepted by all economic students.
Another fact that discredits the quantitative
theory is that the advance in prices following a
*See Note 11 appendix.
8



fresh issue of money is not (as the them'y assumes) permanent. It is temporary, for the reason that the secondary effect of a new mdiney
issue is to stimulate and make possible the production of articles for which there is an active
(lemand, so that prices will become normal when
the new demand is satisfied.
,
It will not be denied thAt price indicates v l.te,
therefore an increase in price means a real increase in value. As commodities are known to
Increase in value while the money volume remains stationary, it is clear that prices may advance, though the value of the money unit be
unaffected. Our contention is that any and every
change in prices is due to fluctuation in the
value of commodities—never to a change in the
value of full legal-tender currency—paper or
specie.
The significance of this conclusion—if valid
—is apparent. It reveals a truth of the greatest
moment, viz:
That the privilege of calling new money into
existence (which is now exercised exclusively by
owners of gold bullion and national bonds) may
be extended to owners of other stable wealth
without fear of impairing the value of the money
unit. And that a wise change in the provisions
of our currency law will enable us to substitute
cash provided by government at a nominal cost
to the money-user) for the credit substitute for
cash that is now provided by financiers at impoverishing rates of interest.
The following is the logic that sustains our
conclusion:
Whatever "value" may be, it is something that
is expressed in "dollars." The fluctuating value
of commodities and the debt-paying value of the
legal-tender symbol is thus expressed. As the
value of the debt-paying device—money—(expressed in dollars) is always the same (being
fixed by statute) it manifestly cannot be affected
by the economic law of supply and demand.
9

TIe following illustrations furnish additional
Proof of the truth for which we are contending:
If wheat, for example, advances from 75 cents
to a dollar a bushel, the value of the money unit
is net affected, because it will still buy a dollar's
worth of wheat—the value of which, like that of
the debt-paying device, is expressed in arbitrary
units, called "dollars."
To elucidate this truth, let us suppose that
to-day wheat is worth a dollar a bushel, tobacco
a dollar a pound, and silk a dollar a yard, and
that to-morrow an advance in wheat raises its
price to $1.25 a bushel—the price of tobacco, silk
and other commodities remaining unchanged. Can
it be said that the money unit has lost any of
its value so long as it will continue to buy a
pound of tobacco, a yard of silk, and the usual
amount of everything except wheat?—and when
It will still buy a dollar's worth of wheat?
From this it is evident that it will not do
to say that "prices advance," and at the same
time claim that "money cheapens," for if money
cheapens there is no real advance in price. The
foregoing illustration shows clearly that fluctuating prices are due, solely, to a change in the
value of commodities.
The common belief that money depreciates
in value arises from confounding the effect on
price of a failing credit currency with the effect
on demand of an increasing volume ef mone3.
A convincing reason why the theory in questicn cannot be defended is that its claims do not
harmonize with our monetary experience. For
example: In 1Sril we had a currency circulation
of perhaps $5 per capita, while In 1865 it was
nearly $70. Prices barely doubled in that time.
while according to the quantitative theory they
should have increased fourteen fold. But the
doubling of prices may be accounted for by other
War has
(Wises than the increase in money.
always caused prices to advance, though the
money volume remains unchanged, and for an
obvious reason, viz: consumption is increased and
10




prorluction curtailed as soon as arthies aFe in
the field. Producers cease producing while eontinning to consume, and the great law of supply
and demand operates to change prices, regardless of the money volume.
We invite your attention to the further fact
that during the currency contraction of October
last (1907), prices were but slightly affected.
Stocks depreciated in value, but general prices
remained firm, though an enormous contraction of
the circulation had taken place through the sudden withdrawal of credit by the banks. A general stagnation of business followed, though the
general level of prices was higher than it had
been for years. Shortly after a general denial
of credit by the banks, there was a great increase
in the tangible circulating medium, through the
Issue of millions of clearing-house certificates, yet
no advance in prices occurred. These facts prove
the incorrectness of the claim that the money
volume determines price.
Perhaps the most vulnerable part of this speelms theory is its claim that "prices will continue
to rise as long as money continues to increase."
Because rising prices in the past have followed
an increase in the money volume, its advocates
asssnme that they will continue to do so. In
reaching this conclusion they lose sight of the
fact that it is only when the volume of the circulating medium is unequal to the needs of commerce that advancing prices accompany increasing money. The theory is based entirely on the
experience of the past—a period during which
society has never known a sufficient volume of
money. The obvious fact that a changing money
volume affects price only as It affects demand,
suggests that were demand beyond the influence
of a scant money supply, a change in the quantity
could not affect prices.
Reflection justifies the assertion that the only
manner in which the money volume may affect
price is in affecting demand. We claim that demand would not be affected were the money volume equal to the money needs. Were our full

11

powers of 4)roduction engaged, additional money
could not further increase production, and were
our full powers of consumption engag'ed, a new
Issue could not increase consumption. Consequeutly as an augmented volume could affect
neither production or consumption, it is inconceivable that it could affect prices.
This reasoning leads to the following conclusions, namely:
1. That money is not the "measure of value,"
as is generally supposed.
2. That values are estimated and determined
without the aid of money.
3. That values are not even expressed in
money, but in abstract units of value, called "dollars."
4. That the unit of value and the unit of
money are not identical, but are distinct commercial factors—the money unit being concrete, the
value unit, ideal.
5. That the dollar, in fact, is not a material
thing, but a mere concept, like the figure 1 in
numbers.
6. That the word "dollar" does not especially
refer to money, but, in its true sense, refers to
the value of the legal-tender symbol, just as it
refers to the value of commodities and property.
7. That money, by virtue of its debt-paying
power, is simply the commercial equivalent of articles possessing utility value equal to the denomination of the legal-tender coin or certificate.
While the value of money is not affected by
a change in the volume, the price of money is.
That is to say, the interest rate varies with a
material change in the supply when the volume
is less than the money needs. Were the volume
equal to our commercial requirements, however,
the payment of tribute for the use of currency
for facilitating exchanges would be unknown.
By "tribute" we mean compensation for the
use of a circulating medium, as distinguished from
compensation, or hire, for the use of property.
The distinction is well defined, though not gen12




erally recognized. Compensation for the use of
property is a legitimate charge—property being a
product of labor. But compensation for the use
of a legalized representative of property (a product of legislation) is a charge that wealth-owners
literally compel themselves to pay, by failing to
provide for the monetization of the wealth they
now, as borrowers, pledge as security to the
money merchant.
According to the Land Currency Philosophy,
money in circulation is nothing more or less than
"a legal-tender representative of wealth." It circulates at par, and is the equivalent of property,
because it is invested by law with arbitrary debtpaying power.
A money symbol, paper or specie, worth $5
for liquidating debt, has an exchange value equal
to that of commodities worth $5 for other uses.
Modern commerce is the birter of commodities
having a fluctuating value, determined by supply
and demand, for legal-tender symbols having a
fixed value for discharging contract obligations.
Being "a legal-tender representative of wealth,"
money should be issued as such by the state. It
should be issued to wealth-owners, on application, as they may require it for commercial purposes.
It is the duty of the state to ervatt- money for
the convenience of the individual, who, as a producer, is entitled to a currency representative
cf the wealth he creates, for the conclusive reason that (as barter is impracticable in complex
society) a currency representative is essential to
a just distribution of the fruit of his industry.
Money being the available representative of
individual wealth, to the individual belongs the
prerogative of calling the representative into existence. His alone is the right to determine when
his wealth shall be monetized for currency purposes. This is the present right of the gold owner,
and of the national bond owner, and it should be
the right of the wealth owner.
13

The individual alone should place in circulation the currency representative of the wealth he
creates, or acquires, when his needs require it.
No reasoning can justify the state in disposing of
the currency representative of the wealth of the
individual, except that acquired by taxation.
tit-er. Were all wealth owners .granted the right
(
to demand and receive a currency representaVve
of their wealth, on application, an impartial and
cufficient issue of money would result—the benefits of which cannot be estimated. Such a law
would, for the first time in the history of civilization, make the life-blood of commerce readily obtainable by the producer to whom it is a necessity.
We claim that money commands interest in
the market, not because it is valuable, but because it is inaccessible to the followers of useful
pursuits—who for specious reasons have, for centuries, unwisely confined the issue of legal-tender
to the monetization of the precious metals.
The inevitable effect of this baneful law is
to force society to compensate the individual for
mere
the use of an artificial exchange medium
product of legislation.
The sum we obligate ourselves to pay financiers each year for the use of this legislative
device is greater than the surplus earnings of
our every industry. An imperfect knowledge of
the nature of nionc5, and a general belief that
it can depreciate in value, results in a financial
policy which so restricts the issue of legal-tender
that It, and its credit equivalent, commands "interest" in the market—INTEREST, the legalized
tribute upon which the drones of society lawfully
subsist.
That an interest-yielding currency is the sole
cause of poverty among the industrious, and of
want in the midst of abundance, is a fact that
has eluded the scrutiny of the student of social
science.
Our claim that the volume of monov has nothinf.; to do with its value, and that, should trade
r(qiiiir, it, filo volume of money may equal the
14




volume of wealth, without depreciating, is both
valid and demonstrable.
For example: Suppose every note or bond that
is now amply secured by mortgage, or trust deed,
on real estate were by law made a tender for
debt—would not the act enormously increase the
volume of money? And would the value of such
paper be impaired by making it a legal-tender?
Suppose that against every $5,000 worth of land
a bond for $1,000 was issued—would such bonds
depreciate in value as their number increased?
Certainly not—nor would the act of investing
them with debt-paying power impair their value.
Suppose all individual wealth—real and personal—were made a legal-tender for debt—why
would such an increase of money impair the value
of the money unit?
Suppose we were in the purely barter stage,
where commodities are exchanged for commodities, and money has not been invented—would not
values be adjusted solely according to supply and
demand? If so, upon what twist of logic can it
be claimed that if all personal and real 1)roper0
should be monetized by the certificate process
into a money representative, and this used in exchanges instead of the commodity itself, that
values would be affected or changed by the act?
How could values be affected when the money
thus created would be used only to facilitate exchanges, discharge debts, and conserve individual
wealth?
Finally, what additional evidence is required to
satisfy the discriminating mind that "legal-tender
representatives of wealth," of convenient denomimations, may be made abundant or scarce—accessible or inaccessible—according to the wisdom
of legislators?
Very respectfully,
CHAS. M. RICE,
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Commit tee.

Denver, Colorado, October, 190s.

15

SUPPLEMENTAL COMMUNICATION NO. 2.
Hon. Henry M. Teller,
Hon. Robert W. lionynge,
Members of the L. S. Monetary Commission.
Gentlemen:
Having shown by irrefutable argument that
absolute paper money (issued for currency purposes against individual wealth, and possessing
arbitrary debt-paying power) cannot depreciate in
value, the folly of longer continuing a financial
policy which deprives society of a sufficiency of
that which is essential to the full employment
of its industrial powers, becomes apparent.
And yet, the idea that it is the duty of the
state to provide a circulating medium for which
"interest" cannot be exacted, and that a change
in the currency law would give the wealth owner
bona fide money for the asking, is so foreign to
traditional belief, to custom, and to the teachings
of economists, that even the most enlightened
hesitate to accept the argument—conclusive
though it be—which elucidates this vital truth—
this veritable revelation in economics.
We feel confident, however, that in presenting
this new idea to a National Commission, instituted
to ascertain the cause of our financial ills, we
are submitting it to a tribunal that will appreciate
the argument we offer in its support, and recognize the merit of the measure we suggest for providing a national currency equal to our commercial needs.
The proposal to monetize land values by the
certificate process is simply a proposal to make
a larger percentage of our stable wealth avAilahle
for currency purposes, wit limit departing from I he
established method of providing currency for commercial uses.
It is only a feasible plan for supplying the
enormous deficit in our currency volume, which,
as shown by the last Report of the comptroller
16




of the Currency, now exceeds twelve billion dollars!
It is a practical plan to substitute cash (provided by government at a nominal cost to the
money user) for the credit substitute for cash
that is now provided by financiers at burdensome
rates of interest.
It is an automatic method of calling new money
Into existence as it may be required by our expanding commerce.
The Federal Constitution confers upon Congress the power to create money! It is evident,
however, that the power conferred by the Constitution is not fully exercised so long as the producer must compensate the indivicual for the use
of this legislative device—a device that is indispensable in distributing the fruit of industry. Obviously the money supply should equal the money
needs—and nothing is more certain than that
INTEREST is the barometer which unerringly indicates the extent of the money shortage.
Beyond a doubt the legal-tender attribute is
that which enables mcney to perform its throfunctions, viz: to conserve individual wealth; to
facilitate exchanges; and to pay debts; and while
a definite amount is required to perform two of
these funciions (discharge debt and effect exchanges) the demand for money for conserving
the earnings of the industrious is practically unlimited. Thus its three uses will readily absorb
t7 'e limited volume of currency that may be called
.
into existence under the automatic plan of issue
we suggest.
Statistics show that the uninvested savings of
the American people at this time exceed fifteen
billion dollars, while the tangible circulation is
less than throe billions. An additional currency
Issue of twelve billions, therefore, could be used
for the purpose alone of conserving, in money,
the present savings of bank depositors—savings
17

now conserved in nothing, more tangible than unsecured promises of the banks to pay their depositors, "on demand," twelve billions of money
that is not in existence.
Obviously, a law that will make the "legalized
representative" as accessible to land owners as
it now is to owners of government bonds, will—
by making 50 per cent of the nation's wealth eligible to monetization by the certificate process—
provide a practical means of getting the required
currency into circulation. The volume proposed
will be limited, and yet, the required amount may
be called into existence.
Query: Money being a mere legislative device
what excuse is there for a money shortage? Why
pay tribute for its use?
Being a legalized representative of wealth—
such wealth as the law may designate—the law
we, ourselves, inspire—why need there be a dearth
of money so long as there is no dearth of wealth?
Were a currency representative made accessible to wealth owners, on application—is it not
certain that they would escape the interest
charge?
And if interest could not be exacted for its use
--what motive would there be for calling a (41111)1,14
into existence?
Individual wealth when monetized for currency
iffirooses by the coinage process, or by the certific;ite process, is invariably monetized at an arbitrry valuation. Gold is, and silver was, thus monetized. In monetizing land values it is proposed
to make the assessed valuation of productive real
estate, for a given year, an arbitrary and permanent valuation of the same for currency
thus monetizing this most stable form of wealth ;it
a conservative valuation—not exceeding in anY
instance, 40 per cent of its market value.
18




The scientific character of the measure becomes apparent as the fact is realized that it will
automatically provide a sufficient public circulating medium, at a nominal cost to the money user,
by a method that will prevent an over-issue, and
avoid the necessity of monetizing other forms of
wealth.
That the new law will prove equally beneficial
to every citizen, and confer no especial advantage
upon the land owner, becomes clear to those who
perceive that the rate at which the government
will issue a sufficient volume of legal-tender paper
to land owners, on application, will regulate the
cost in the market of every form of circulating
medium that may be used—whether public or private.
It is a plan to give the commercial world a sufficient volume of money, through the mediation of
Lind owners, just as the present insufficient volume is provided through the mediation of bullion
owners and bankers.
Our contention is, that had we a sufficient
volume of money, competition would insure equitable profits—because demand and supply alone
would determine price. And the wage system
would give the worker his full share of the joint
product—because then, money would seek labor,
whereas now, labor must seek money!
Very respectfully,
CHAS. M. BICE,
WEBSTER BALLINGER.
RICHARD WOLFE,
JAMES D. HOLDEN,

Committee.
Denver. Colorado, November, 190S
19

SUPPLEMENTAL COMMUNICATION NO. 3.
Hon. Henry M. Teller,
Hon. Robert W. flonyvgc,
Members of the 11 S. Monetary Commission.
Gentlemen:
A fundamental principle of The Land Currenc
philosophy is:
That fluctuating prices are due to a change
in the value of commodities—never to a change
in the value of real money—paper or specie.
Evidence of the truth of this conclusion is
found in the fact that in modern commerce articles are virtually exchanged for products—through
the mediation of money: legal-tender currency being that which reflects, and represents in trade,
the value for which it is exchanged.
Commodities are converted into the legal-tender
representative at their relative value, compared
with that of other commodities—not as compared
with money. It is the relative worth of the commodity, therefore, estimated and expressed in
imaginary units of value (called "dollars") which
determines the number of legal-tender units it
will command in the market.
The debt-paying device is the exchange equivalent of articles having utility value, because, aside
from its material, it has a legal value for a popular
use equal to its face; a legal value which is unchangeable because fixed by legal decree.
The non-existence heretofore of the true money
idea is attested:
First. By the universality of the interest-paying
custom—whereby society, without protest, needlessly compensates the usurer for the use of an
essential legislative device; an artificial device for
which "interest" is exacted only because the supply does not equal the demand.
Second. By the fact that heretofore every effort to increase the circulating medium has been
in the way of providing credit substitutes for
money, instead of increasing the issue of pure
20




legal-tender itself; a fact which shows that there
has been no general recognition of the economic
truth: that the legal-tender function is that alone
which insures the circulation at par of all money,
whether paper, silver or gold.
Third. By the prevailing belief that money
should have "stable purchasing power"; and that
its value should be "regulated" by limiting the
Issue--a preposterous idea, because it is a patent
fact that had money stable purchasing power
there would be no such thing as a change In
price, the very thing required to cause supply to
respond to demand.
Additional evidence of the phenomenal dearth
of fiscal knowledge, is the fact that all paper issues
in the past, with a single exception, *
have
been promises-to-pay-specie-on -demand. Even the
paper issues of the civil war period (declared to
be "money" by the United States Supreme Court)
were a credit currency invested with the legaltender quality. The promise of ultimate redemption in specie inscribed on these notes indicates
the existence of a belief that the legal-tender attribute alone would not insure their circulation at
par with coin.
*
The nearest approach to absolute paper money
of which we have a record, was the Land Currency,
issued to land owners, in Franklin's time. by the Colony of Pennsylvania. This currency circulated at par
with specie for 40 years—from 1722 to 1702. The original
issue, in 1722, was a credit currency invested with full
legal-tender power; but. at Franklin's suggestion, the
issues subsequent to 1731 were not redeemable in coin,
but were a pure paner money which perfectly performed all the functions of specie, because invested
by law with all its legal powers.—See Pennsylvania
Magazine of History and Biography for April, 1888.

While the currency system we propose would
destroy the business of the usurer, it would benefit
the capitalist and the investor.
It would make dividends on stocks as safe as
Interest on bonds—because it would exempt the
stockhold( r from the exactions of the bondholder.
It would create a field for investment in industrial enterprises which would make the investment
lucrative because of the increased ability of the
industrious millions to freely gratify their wants.

21

Relieved of the burden of compensating the
usurer for the use of a scant money supply; and
escaping the indirect tax which, as consumers, they
now contribute (daily) to the enormous fund from
which tribute is paid on billions of national, industrial and railway "bonds," the producers of the
nation would, at last, enjoy the full fruit of their
industry.
By giving themselves the same right to a legaltender representative of their stable wealth which
they now grant to the owners of gold bullion and
certain bonds, the followers of useful pursuits, by
simply amending a statute, would create for themselves an economical environment in which there
would be no artificial handicap to individual effort;
no artificial obstacle to the development of the
nation's boundless resources.
Money being an indispensable distributor of
product, it is clear that an insufficient issue must
result in imperfect distribution. Being a necessity,
an abnormal industrial condition is the inevitable
concomitant of an inaccessible circulating medium.
As the present cost of an artificial medium for
facilitating exchanges exceeds the surplus earnings of the industrious, the relationship between
their poverty and a scant money supply is obvious.
In concluding, we beg leave to add that in our
opinioil we have presented for our consideration
an argument which reveals NI1 amazing truth,
namely:
That want in the midst of abundance, the unjust division of wealth, and the money troubles of
the industrious, are the necessary effect of an
Insufficient. issue of legal-tender paper; and that
these evils will disappear when our public circulating medium shall equal our commercial needs.
Very respectfully.
CHAS. M. RICE,
WEBSTER BALLINGER,
RICHARD WOLFE,
JAMES D. HOLDEN.
Comm itt ea.
Denver, Colorado, December, 19I).
)
2'




APPENDIX.
NOTE A.—"The surplus earnings of industry" are
indicated by the annual increase in national wealth,
whicit (less the advance in real estate values) approximates two billion dollars. Our total indebtedness, public and private. is variously estimated at from 30 to 40
billions. *
Assuming that it aggregates 35 billions
anG that the average interest rate thereon is 6 per cent
per annum, TWO BILLION ONE HUNDRED MILLIONS is the sum we obligate ourselves to pay financiers each year for the use of a circulating medium—
ONE HUNDRED MILLIONS more than the value of
the surplus product of our every industry.
* The following items anu, figures indicate the present
Interest-bearing indebtedness of the people of the
United States, expressed in round numbers. The compilation is from official reports and estimates of experts:

National lowids
State bonds
.
Municipal and Lounty bonds
Steam Railway bonds
Street Railway bonds
Industrial bonds
Real Est.ate Mortgages
Chatte, Mortgages (a)
Bank Discounts
Unsecured Notes and Book Accounts (h)
Total

$

22400
935"1
,2
2,140,000,000
7,821,000,000
1,455,000,000
2,742,000,000
10,000,000,000
2,500,000,000
5,766,000,000
1,417,000,000

$3; 000,000,000

(a) Estimated at 25 per cent of the known Real Estate Mortgage Debt. (b) A meagre estimate.
NOTE 11.—A distinction, not generally recognized,
exists between the value of money and its "purchasing-power." Value is invariably expressed in imaginary units (I. e., 'in dollars), while purchasing-power
can be expressed only in commodities. As the value
of a coin, or other debt-paying device (expressed in
dollars) is always the same—always equal to is denomination—it cannot possibly fluctuate.

23

The fact that an insufficient volume of money frequently
compels a sacrifice of values to obtain it, is that which gives
color to the claim that real money fluctuates in value, when in
fact every change of value is in the commodity.
Were it possible for legal money to vary in value, a change
in .prices would indicate nothing, and the business world would
be at sea regarding values.
To realize that the so-called purchasing power of money is
determined by the relative value of commodities (compared
with each other) is to perceive that it cannot be determined by
the volume of money, as claimed by adherents of the quantitative
theory.
The belief therefore, that an artificial symbol, created by society without cost, (and which has no independent value aside
from the delegated function which enables it to reflect and represent the values for which it is exchanged) is subject to the
same economic law that determines the exchange value of a pro(luct of labor, is a belief which, though well-nigh universal, cannot be sustained by logical reasoning.

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24

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in

THE MONEY SHORTAGE
Its Magnitude and Blighting Influence
Supplemental Communication No. 4.
The Land Currency League
-Hon. Henry M. Teller,
Hon. Robert W. Bonynge.
Colorado members of United States Monetary
Commission.
Gentlemen: The purpose of the financial measure we are advocating is not merely to reduce the
cost of currency to borrowers—it is to obviate the
necessity of borrowing. It aims to call such a volume of money into existence for the use of the
commercial world that A's money will not be required to "finance" B's enterprise.
The purpose of the measure is to deprive A of
the power to exact "interest" from B for the use
of an availnhle representative of wealth. We accomplish this by giving B the right to obtain from
the state, on application, a currency representative
of the wealth he is now compelled to pledge as security to A in, order to obtain a circulating medium.
Obviously the welfare of society demands a volume of money sufficient to employ its full powers
of production, and to conserve in tangible form the
savings of those engaged in useful .pursuits. With
such a volume in existence the industrious will acquire and own the money necessary to prosecute
their undertakings.




Money users are now compelled to borrow because of a money shortage. The state does not
create enough money to answer the needs for money.
The present supply is more than $12,000,000,000
short of the sum required to conserve in money the
savings of those engaged in useful avocations.
A money shortage not only enables those who
have a surplus to exact for its use a form of tribute
called "interest," but it enables financiers to reap
the fruit of toil by supplying their neighbors with
a credit substitute for cash—an intangible makeshift which commands an interest rate in the market equal to that exacted for the use of gold and
silver coins.
The blighting money shortage, which has afflicted
civilized man for so many centuries, is not, in fact,
due to the machinations of designing men, but to a
false economic belief that is common to rich and
poor alike—a belief that we cannot supply our
money deficit without impairing the so-called
"value" of the money unit--a belief which, analyzed, proves to be founded on an absurd assumption,
namely:
That prices under our present scant money volumn are normal. and a measure that would provide
a sufficiency would beget abnormal prices. '•
Obviously the inauguration of a rational money
system cannot be expected so long as our legislators and financial guides are influenced by this prepostnrons belief.
The credit constituent of our present circulating
medium of cash and bank credit indicates the extent of the money shortage as related to our present
restricted volume of business. As stated, it exceeds $12.000,000,000.
Ours is an automatic plan for supplying this deficit. We suggest a feasible and scientific system
that can be inaugurated without disarranging business or disturbing prices.
We gain the end by substituting legal-tender
paper for the intangible ingredient of our present
circulation.




We right our wrongs and brings order out of
chaos by a single rational act, namely: By making
the money supply equal our commerciarneeds!
The system we propose will require money owners
to invest their surplus funds in industrial enterprises if they would have them yield an income—enterprises that will create a wholesome demand for all
forms of labor. Such a system will compel the
money owner to contract for the labor necessary
to make his mony yield an income; and this new
call for labor will enable the worker to demand and
receive his full share of the joint product, where
now his necessities compel him to accept a wage
in the determination of which he has no voice.
. It is a singular fact that men are rare who perceive
that it is possible to abolish poverty from among
the industrious by the single act of perfecting our
money system. Failure to recognize this vital
truth is due to a common lack of knowledge as to
the underlying cause of our economic ills. Only
those who perceive that the evils of which we complain are traceable to a single cause realize that a
single remedy can effect a complete cure.
The argument that sustains our claim that all
economic ills are traceable to a single cause is
based on the following facts, viz:
Ages ago—probably under the first civil government having powers defined by written laws—an
act was passed whose blighting influences upon the
destiny of the individual was unforeseen by those
responsible for it, and has remained undiscovered
to the present day. This baneful statute—the evil
effect of which has escaped the scrutiny of the
student of social science—has been bequeathed by
government to government during the intervening
centuries, and is today a fundamental law of every
civilized nation of the earth.
This silent law— which alone prevents a just division of product—is the law which for ages has
confined the volume of legal money to the coinage
of the precious metals!

Query: Why is this ancient statute alone responsible for the havoc, the injustice, and the misery
with which ji is charged?
t
Because it unduly restricts the volume of legal
money, that which, because it is essential to the
distribution of the fruit of toil, is essential to human happiness!
To unduly restrict the volume of legal money is
to disarrange the industrial machinery of civilization. To cause a money shortage is to make the
followers of useful pursuits dependent upon the individual for a commercial device that is a necessity
to man in complex society. The act places the
producers of a nation at the mercy of the owners
of a scant money supply, and those who can furnish the commercial world with an available credit
substitute.
To unduly restrict the volume of legal money,
therefore, is to enable a few to unjustly reap the
fruit of toil by exacting legalized tribute from the
many for the Ute of an artificial device that is as
essential to the distribution of wealth as labor is to
its production.
In this inherited statute, therefore, we discover
the primary and sustaining cause of our every
economic ill. To amend the law in the manner we
suggest is to make poverty impossible by instituting a normal iudustrial condition. The proposed
amendment alone will give the fruit of toil to those
who creatP it -hecaube it will cut off the present
unjust income of the nonproducer. Very respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
• Committee.
Denver, Colo., June, 1909.
Read "THE DISTURBING FACTOR IN HUMAN
AFFAIRS," By James D. Holden. Sent post- paid for 25e. Address Secretary Land Currency
League, 231 Kittredge Bldg. Denver, Colorado.




Statement showing the amounts of Gold and Silver Coins and Certificates, United States
Arotes and Afational Bank JV'otes, in circulation .4144.(ust 1, 18,91.
GENERAL STOCK,
COINED OR ISSUED.
Gold Coil'
Standard Silver I )4111;irs
Subsidiary Silver
Gold lertiticates
Silver Certificates
Treas'y Notes, Act July14, 1890
United States Notes
Cur's Celt'f's, Act June 8, 1872..
National Bank Notes

TOTALS

AMOUNT IN CIRCULATION
ITG UST 1, 1891.

IN TREASURY.

$581,721,468 00
406,635,268 00
77, 131,606 00
119,720,209 00
115,489, 159 00
51,991,035 00
316,681,016 00
27/ 445/ 000 00
168,542,259 00

$174,091,456
:348,471 7:389
19,:368, 142
34,004,820
8, 198,:345
11,:309,957
26,788,452
180,000
5,924,917

00
00
00
00
00
00
00
00

628,337,508 00

2,128,360,320 00

00

$107,630,012 00
58, 163,879 00
00
57,763,461
115,715,38!) 00
307,291,114 00
43,684,078 00
319,892,564 00
27,265,000 00
162,617,312 00
1,500,022,812 00

A num nt of National Rank Notes issued during the month of July. 1891.
A mount of Nat ional Bank Notes redeemed (luring the mont.101y, 1891
h4

AMOUNT IN CIRCULATION
AUGUST 1, 1890.
$375,114, 196 00
56,981,268 00
54,284,363 00
132,444,;49 00
298,748,913 00
000,000 CO

f

334,517,604 00
179,625, 274 00

1,431,716,367 00

.:»427 596,32() 00
1,982,035 00

Comparative Statement showinl the changes in Cirealation during July, 1891.
IN CIRCUL1tT1oN
JULY 1, 1891.
Gold Coin
standard silver I )011ars
Subsidiary Silver
Gold Certificates
Silver Certificates
Treasury Notes, Act July 11. 1890
United *tat-es Notes
Cur'y Celt'f's, Act .141ne 5, 1872 .
National Bank Notes

*408,073,806
57,683,041
58,990,921
1201 84o, 399
307,:161, 118
40, 163, 165
:323, 714, 272
21, 365,000
162, 279 800
,

00
00
00

IN CIRCULATION
AUGUST 1, 1891.

$107,630,012 00
587.163, 87!) 00
57, 763, 161 00
I IS. 715, 389 00
::07, 991, 111 00
13,684,078 00
319,892,564 00
27, 265,000 00
1621 617,312 00

1, 500,067,555 00

TOTALS

00
00
00
00
00

DECRE.A.SE.

1, 1)41, 00:!, s1 9 00

00

" 113, 791 1)1)
4
$480,838 00
527, 160 00
51 125,010 00
73,034 00
3, 220,913 00
:3, 821, 708 00
5,900,11011 00
:111,:,p) 011
9,991, 006 oo

Net decrease.

IN'TREAsuRY
JULY 1, 1891.

(;11111

$176,450,37s
:;17, 976, 227
19,656,695
9, 765, 252
22,966, 711
5,655, 171

u Treasury dttrins? July,

IN TREASURY'
AUCFUST 1, 1891.

4,0
00
00
00
00
00

*174,4)91.156
318,471 389
19, 368, 112
11, 309,957
26, 788, 452
5,924,917

00
00
00
00
00
00

DECREASE.

Sik (r
1)1111:IrS :IS I:11111 4 111

rn yr.\

$195, 162 00
288,553 00
1,5.11,703 0)
3,821. 708 00
269,773 00

582, 170 1:0 00
62,067, 711 oo
26,880, 8l. 00
4,818, 201 40)

585,954,313 002,
617, 175 00
62, 736,957 00
32, 511,670 00
1, 038, 151 00
809,750 00
683,274, 124 4)0

3,457,225 00

Net increase
C,(dd Certificates held in ea.,11
001,820 00
Silver Certificates held 111 I' ish
8, 198, 345 00
( 1 urrency Certificates held in cash.......184),000 00




6, 131,318 00 .
669,21:; 00
5,663,822 00

12, 161,:383 (H)

$9,007, 158 00
111(•rease since .1'11 1 1891
1 ucrease sin((' .1111. 1, 1891
\
. I )0(11'ea,S(`

\
Si I WO .1 I I I.

NoTE.--Currency
.1c1 Julic 5. 1572, heretofore includcd in the ainowo
separately, and will be so stated hereafter.
111
I

I NCREASE

$ ,358,922 00
0

4876, 967, 24;6 00

iiiilli(111

9,916, 963 00
t14, 743 00

Comparative Statement of chanoes in.. Money and _Bullion
1891.

Gold Coin
Standard Silver 1 )1111:1
Subsidiary Silver
Treasury Notes, Act Jul.\ H. I .`‘90..
Milted States Notes
National Bank Notes

INCREASE.

I

184)1

*",
790 00
817,308 00
000 00

I I iiliii States Notes in circulation, are stated

REASITIZY I /EPA 1,Tm ENT,
Office.
Dirbtion (#. 14)(I II.' and Ourrency.

.si'iviry's

(Ed. $-9-'91--604).)

ABSTRACT OF REPORTS OF CONDITION OF NATIONAL BANKS.
-NO. 74.

WreastivB -ciaartittent,
OFFICE OF THE COMPTROLLER OF THE CURRENCY,
044/Zyian,

jedy

Abstract of Reports of Condition of National Banks in the United States on September 1 and November 10, 1910, January 7, March 7,
and June 7, 1911.
Sept. 1, 1910-7,173
banks.

Nov. 10, 1910-7,204
banks.

Jan. 7, 1911-7,218
banks.

Mar. 7, 1911 - 7,216
banks.

June 7, 1911-7,277
banks.

RESOURCES.

Loans and discounts
Overdrafts
United States bonds to secure circulation
United States bonds to secure United States deposits
Other bonds to secure United States deposits
United States bonds on hand
Premiums on United States bonds
Bonds, securities, etc
Banking house, furniture, and fixtures
Other real estate owned
Due from national banks (not reserve agents)
Due from State banks and bankers
Due from approved reserve agents
Checks and other cash items
Exchanges for clearing house
Bills of other national banks
Fractional currency, nickels and cents
Specie
Legal-tender notes
Five per cent redemption fund
Due from Treasurer United States
Total

$5,467,160,637. 98 $5,450,644,385. 89
29,541,681.47
47,066,980. 17
685,692,290.00
690,056,800.00
4L) 857,700.00
40,637,700.00
- 927,191.01
"M,
10, 685,470. 71
11,042,110.00
9,908,980.00
10,891,763.54
10, 765,320. 74
854,127,665.04
856, 173,766. 19
213,769,651.64
218, 729,573.58
23,044,585.56
25, 767,999. 33
378,295,152.55
440,512,052.46
147,914,089. 26
190,422,724.03
688,715,945.05
686,468,726. 74
39,330,620. 38
35,987,572.58
284,962,685. 13
339,861,153. 38
41,547,840.00
43,910,226.00
2,906,840.89
2,842,927. 28
672,626,546. 13
646, 146,451.61
179,058,491.00
169,924,209.00
33,121,208. 34 ,
33,439,482. 26
7,646,757. 39
6,524,328. 90

$5,402,642,351.82
40,507,042.07
691,773,710.00
40,260,400.00
9,663,256. 72
9,654,660.00
10,060,037.05
884,153,702. 34
220,586,770. 59
24,635,119. 18
434,617,004.93
198,867,239.03
717,463,231. 97
40,815,716.86
163,783,356. 61
45,499,187.00
3, 129,148. 51
667,871,263. 33
168,396,096.00
33,619,603. 97
12,485,069. 74

$5,558,039,050. 10 $5,610,838,787.01
30,051,957. 35
23,397,257. 78
692,842,740.00
694,214,820.00
39,851.700.00
40,768,400.00
9, 593,171. 15
12,168,275.64
9,651,060.00
9,854,250.00
9,634,916. 38
9,907,421. 34
926,945,935. 10
995,475,144. 31
223,637,293. 17
228,840,419.09
24,568,991. 34
24,168,885.00
437,255,575. 22
415,385,545.96
187,808,201. 99
195,714,143. 29
814,270,800. 19
765,686,132.08
31,091,641. 34
31,155,316. 27
248,022,859.29
286,321,804. 73
45,992,143.00
48,591,154.00
3, 156,249. 18
3,139, 177.58
735, 761,949.48
761, 111,507.47
172,274,678.00
185,219,602.00
33,023,636. 34
33,643,051.97
7, 299,659. 60 '
7,447,598. 79

9,826,181,452,36

9,956,476,830. 85

9,820,483,967. 72

10,240, 774,208. 22

10,383,048,694. 31

1,002,735,123. 25
648,268,369. 97
225,769,399.53
674,821,853.00
27,707.00
929,652,332. 28
476,745,154.06
499,646,587. 85
37,647,487. 76
1,326,154. 84
5,145,658,367.65
36,309,858.54
13,850,642.09
34,574,822.00
18,867,294.33
72,847,849.63
5,445,179.84
1,987,268. 74

1,004,288,107. 37
652,462,489.68
242,806,964. 79
680,440,468.00
27,707.00
938, 152,514.92
481,940,624.42
444, 379,730. 32
41,887,794.02
1,654,655. 12
5,304, 788,306.45
36,836,471. 14
11,585,087.42
35,016,205.00
13, 189,956. 78
58,496,236.81
5,907,642.86
2,615,868. 75

1,007,335,429.90
665,792,492.46
219,481,034. 82
684,135,804.00
27,707.00
980,957,877. 61
487,496,563. 25
480,556,625.46
42,177,082.52
5,782,916. 70
5,113,221,817. 80
36,217,620.48
10,500,635. 73
35,097,661.94
8,901,532.41
35,762,653. 21
4,167,832. 62
2,870,679. 81

1,011,570,323. 97
665,722,552.64
232,447,742. 22
680,727,243.00
27,706.00
1,101,829,596. 28
538,456,347. 77
545,663,714. 15
38, 769,617.52
1,433,238.02
5,304,624,091.41
34,413,926.02
11, 109,620. 73
33,265,060.69
6,282,958. 77
27,603,221.08
3,406,591. 17
3,420,656. 78

, 1,019,633,152. 25
671,946,796. 68
,I
241,554,106.09
1
'
681,740,513.00
27,706.00
1,039,478, 769. 70
500,201,379.84
568,902,593.30
38,858,256. 20
1,851,823.47
5,477,991,156.45
37,166,814.31
11,288,827. 23
36,858,748. 77
9,308,500. 17
36,690,528.91
6,493,554.41
3,055,467.53

9,826,181,452. 36

9,956,476,830.85

9,820,483,967. 72

10,240,774,208.22

10,383,048,694. 31

LIABILITIES.

Capital stock paid in
Surplus fund
Undivided profits, less expenses and taxes
National-bank notes outstanding
State-bank notes outstanding
Due to other national banks
Due to State banks and bankers
Due to trust companies and savings banks
Due to approved reserve agents
Dividends unpaid
Individual deposits
United States deposits
Deposits of United States disbursing officers
Bonds borrowed
Notes and bills rediscounted
Bills payable
Reserved for taxes
Liabilities other than those above stated
Total

Changes In the Principal It(' ' of Resources and Liabilities of National Banks as Shown by the Returns on June 7, 1911, as
Compared with the
Returns of March 7, 1911, and June 30, 1910.
Since Mar. 7, 1911.

I l' I.: MS.

Iticrease.

Loans and discounts
United States bonds
Due from national banks, State banks and hankers, and reserve agents
iie
Spe,
Legal tenders
Capital stock
Surplus and other profits
Circulation
Due to national and State banks and bankers
Individual deposits
United States Government deposits
Bills payable and rediscounts
Total resources

Decrease.

$52, 799, 736. 91
2,491,970.00
$62,548,756 07
25,349,557.99
12,944,924 00
8,062,828.28
15,330,607.91
1,013,270.00
77,278,276 68
173,367,065.04
2,932,094.79
12, 112,849.23
142,274,486.09

Since June 30, 1910.

Increase.

Decrease.

$180,679,600.26
7, 264, 320 00
175, 178,997 95
116, 767,652.70
8, 790,561.00
30,066,038. 25
52,097,294 85
6, 107,947 50
247,305,377 03
190, 774,844 25
$6,085,707.87
23,702,828.96
486,423,997 58

Total number banks reporting on June 30, 1910, 7,145; June 7, 1911, 7,277; increase, 1:12.

LAWRENCE 0. MURRAY,
202--11




Comptroller.

Abstract of Reports of the National Banking Associations of the United States

2

RESOURCES.
STATES, TERRI- NUMTORIES, AND RE- ber of
SERVE CITIES.
banks.

Loans and discounts.

Overdrafts.

U.S. bonds to
secure circulation.

U. S. bonds Other bonds U.S. bonds
to secure
to secure
on hand.
deposits. U.S.deposits.

Premium on
U.S. bonds.

Securities,
judgments,
claims, etc.

liztukinghouse furniture and fixtures.

Other real
estate arid
mortgages
owned..

Due from
other national
banks.

$1,061,630. 25
$95,839.88
$23,000
$92,457.53 $10,817,759. 39
Maine
$7,163. 75
$241,320.82
$311,000
$5,469,400
$32,879,656.08
70
$58,397. 15
468,342.82
79,046.71
5,929,688.95
41,256.75
35,500
14,000.00
New Hampshire
17,283,964.88
302,000
380,067.68
56
53,108.14
4,987,500
453,779.06
4,858,525. 16
200,000
54,492. 41
35,870.43
Vermont
24,000.00
17,696,337.82
51
232,000
188,459.54
79,075.55
4,841,500
28,119,920.45
4,879,649.04
78,086.72
234,866.22
Massachusetts
69,000
126,489,743.28
32,105.00
362,000
168
20,198,000
81,283. 12
917,595.95
14,548,752.95
5,444,308. 30
24,625.00
Boston
194,537,019.77
20
662,000 2,680,489.54
14,661,858.07
25,113.93
7,748,000
495,371.73
17,762. 50
19,000
50,000.00
23,362. 19
Rhode Island
6,824,196.98
22
178,000
29,560,573. 36
4,657,500
1,927.24
478,968.76
3,293,869.08
16,157,479.64
Connecticut
79
39,777.69
258,984.75
1,500
285,000
64,752,854.99
34,000.00
1,481,169. 12
126,228.55
13,050,850
N.Engl'd States.
16,096,950. 28
483,200,150. 18
466
329,836.62 787,256,323. 52
348,000
746,592.1C 18,349,439.94
2,332,000 2,841,758.29
425,133.68
60,952,750
New York
251,279,274.59
410
84,992,783.27
6,460,341.63
398,039.53
296,640
60,072.48
869,450.51
1,052,000
352,827.89
35,786,820
5,542,312.56
New York City
40
31,254,787. 72
903,566,432.98
2,137,190
1,461,840.80
792,000.00
1,610,000
507,411.89 209,799,792.60
115,437. 11
47,796,600
50,679,962. 17
Albany
20,141,245.32
90,000
3
565,000.00
8,734,067.73
100,009 50
28,433.88
3,011.61
2,100,000
9,074,115.07
Brooklyn
17,032,984.17
151,000
4,248,083.94
5
442,323.80
200,000.00
923.32
2,992.08
41,230.02
987,000
231,824.91
New Jersey
196
134,2'25,704.15
7,115,041.09
41,115.51
580,000
161,635. 38
364,080
91,246.88
51,865,977.66
802,820.05
16,826,820
4,363,911.37
Pennsylvania
324,565,659. 15
700,000
20,743,834.63
773
2,131,699.48
264,100
51,468.75
488,904. 15
1,481,028.74 117,984,881.65
55,616,510
6,155,857.89
Philadelphia
218,689,693.26
33
240,000
319,300.00
55,000
21,272.26
37,203,091. 34
534,789.04
16,082,000
6,677,338.72
488,262.05
33,413,499.72
Pittsburg
137,386,978.84
24
105,000
100,000.00
41,699.51
35,508,321.40
672,000
18,577,012.90
513,006.94
16,624,000
2,156,107.05
9,397,496. 13
Delaware
28
9,599,884.96
12,098. 23
100
3,049,254.41
4,000
554,719.94
54,597.00
24,927.64
1,562,5(X)
89,265.63
228,810.60
Maryland
26,398,443.81
90
283.96
57,
4,483,490
1,579,690.18
14,260
25,880.00
103,000
72,266.93
10,319,182. 13
108,884.06
624,384. 11
Baltimore
61,720,003.07
17
4, 189.99
625,500
8,000,0(X)
163,696.69
1,000
523.97
3,
7,889,
132,805.75
38,047.33
7,233,783.92
District of Columbia.
1
860,777.63
673.06
1,000
250,000
131,980.00
23,000.00
363,465.00
10,627.64
Washington
22,275,623.01
10
28,509. 33
331,000 3,286,137.57
5,255,000
4,062,523.29
252,500
2,879,673.52
198,788.47
17,500.00
2,918,406.08
Eastern States.. . 1,630 2,127,742,704.94
1,170,014.69
211,370,740
6,159,500 5,212,692.18
3,489,870 _ 3,995,623.63 576,020,948.39 100,036,460.82
8,233,540.86 129,874,992.17
Virginia
128
92,197,371.84
169,031. 31
13,283,010
1,437,000
154,343.75
82,100
4,899,326.25
3,994,456.87
335,499.25
371,117.62
4,601,610.66
West Virginia
106
44,950,553.85
177,511. 28
430,200
8,215,100
116,2(8)
60,000.00
152,132.50
4,179,195.66
2,703,495.62
256,903.83
2,087,503.87
North Carolina
34,949,066.04
74
137,013.76
517,000
6,504,500
43,000.00
824,794.39
11,010
138,737.72
1,281,537.35
144,644.86
2,996,501.39
South Carolina
23,343,121.79
43
191,005. 15
4,451,750
217,000
8,000.00
60,156.74
771,093.90
1,906,439.88
57,482.47
1,149,881.95
Georgia
112
56,392,948.63
744,000.92
495,000
9,457,250
45,000
5,000.00
1,067,035.34
2,947,509.94
134,724.81
131,152.01
2,212,275.87
Savannah
2,979,209. 14
2
1,353 22
650,000
176,000
2,875.90
26,260.00
31,759.50
216,337.17
Florida
45
29,087,380.17
59,966.73
447,000
4,679,990
33,000.00
167,000
1,478,438.79
79,585.83
1,827,960.09
88,760.05
2,912,671.95
Alabama
34,290,288.89
81
471,805. 12
7,581,000
337,000
15,000.00
98,000
2,978,592.83
189,459. 20
1,807,956.03
212,006.61
2,542,090.53
Mississippi
31
10,965,425.69
289,981.31
3,OM,5(8)
90,000
25,125.25
1,800,459.94
735,421.40
144,855.30
608,962.40
Louisiana
26
16,485,362.56
358,397.06
2,602,500
21,000
11,000.00
541,381.66
73,033. 18
193,000
555,339.86
261,859. 17
1,102,742.68
New Orleans
20,615,999.49
5
174,498. 10
3,332,500
254,000
82,262.49
4,888,797.40
2,307,935.37
1,484,594.93
Texas
112,039,310.70
478
4,078,687.98
20,325,810
885,000
105,070
80,700.00
232,686.36
3,740,952.23
5,854,999.87
1,251,866.01
5,590,788. 74
Dallas
4
16,638,505. 71
181,942.89
2,534,000
181,000
57,000
884,600.00
380,000.00
106,749.64
2,383,275.33
Fort Worth
11,346,836.19
8
297,095.56
1,632,000
2,000
174,167.19
7,468.75
978,684.07
106,134.90
2,575,319.35
Galveston
3,859,560. 35
3
47,463.95
375,000
60,000
2,350.00
208,819.75
276,862.49
2,000.00
481,408.68
Houston
21,223,554.92
6
616,479. 33
2,635,000
52,000
1,506,278.07
666,299.09
9,846.88
242,975.00
3,589,075.85
San Antonio
8,321,745.34
6
177,313. 28
303,000
1,965,000
9,740
2,833.06
659,744.81
302,538. 15
61,805.00
768,273.71
Waco
6
5,088,302.61
141,905.80
1,200,000
40,000
11,552.78
164,0(8). 11
9,650.00
16,871.00
313,972.96
Arkansas
46
16,996,726.06
328,293.34
2,537,510
105,000
5,000.00
410
25,838.81
650,584. 12
005,439.66
172,839.72
1,952,916.38
Kentucky
136
42,016,364.70
623,00S. 23
10,621,850
741,600
21,000.00
183,330
2,612,771. 38
175,402.94
2,189,134.96
301,954.02
762,402.00
Louisville
8
23,192,761.63
17,768. 16
4,215,000
1,102,000
3,500
3,698,555.11
11,220.38
241,000.00
53,508.91
2,558,745.02
Tennessee
100
56,396,056.38
394,581.(X)
9,275,760
47,538.47
716,000
259,000
228,617.36
3,116,301.57
2,066,774.50
346,561.67
5,597,747.77
Southern States
11454 -- 683,376,452.68
9,679,103.48
121,077,030
483,582.22
1,330,360
8,608,80()
1,981.409,29
41,262,688.69
33,180,656.60
4,332,047.79
48,489,099.19
Ohio
165,439,993. 20
356
726,136.67
28,895,180
623,000
394,7140
71,000.0030,041,590. 26
366,187.03
5,883,434.0:3
936,009.61
3,292,144. 20
Cincinnati
8
61,548,539. 20
13,370.99
7,635,100
1,208,500
73,940
20,000.00
10,147,441. 28
3,452,059. 70
130,807. 12
6,880,826. 22
Cleveland
55,282,311.96
7
58,041.77
227,000
6,042,500
15,000.00
4,620,694.56
1,240,000.00
49,623. 35
7,288,344. 40
Columbus
9
16,593,667.75
2,600,000
4,428. 35
103,000
57,320
7,906.70
3,881,502.08
1,161,794. 14
107,350. 38
2,286,833.71
Indiana
254
95,796,626.86
450,138.86
17,640,340
1,034,000
224,571.88
526,980
224,124.95
14,618,981.32
2,856,891. 43
480,194. 46
3,061,406. 3:3
Indianapolis
27,174,675. 41
3,234. 46
5,827,540
352,000
374,393.06
29,700
23,667.54
5,421,598.03
1,149,077.80
34,499.61
4,852,279.52
Illinois
427
158,364,325. 18
1,678,956.07
25,034,960
281,800.00
2,744,500
419,300
305,325. 42
28,017,244.01
6,445,101.60
976,370. 26
4,110,111. 24
Chicago
11
315,529,054. 78
79,114.50
15,137,000
667,000
71,00))
500,000.00
26,663,893.65
87,299. 21
3,283,039.85
55,911.54
58,209,417.53
Michigan
65,763,856.07
97
215,801.92
8,263,250
000
539,
87,921. 20
71. 260
13,516,222.62
74,509. 28
214,582. 70
2,743,683. 21
1,605,682.50
Detroit
3
31,287,004. 46
17,536.99
431,0(X)
1,899,000
508,320
191,630. 32
4,372,714.89
3,507,899. 22
Wisconsin
122
64,066,482.05
290,653. 11
7,960,330
230,000
42,981. 26
45,990
442,846.30
17,267,487. 21
155.81
297,209. 21
275,
2,
922,716.93
Milwaukee
6
38,431,297.83
71,304. 74
(XX)
615,500.(X)
202,000
4,517,
2,257.50
4,564,322. 44
665,000.(X)
72,734.76
3,033,460.75
Minnesota
261
80,708,247.99
620,184.97
214,0(8).(X)
8,954,250
201,7(8)
47,700
129,150. 01
6,304,782. 14
3,578,948. 72
1,173,580.05
3,298,366. 142
Minneapolis
5
47,585,582. 27
6,038.91
185,(XX)
1,000.(X)
3,150,000
1,000.00
45,000
3,342,208.90
1,088,132. 46
6,994,3:37. 61
St Paul
6
27,312,224.65
34,970.89
826,(X)0
2,543,000
763 510.00
3,627,373. 79
2,576,722. 40
Iowa
313
95,864,156.68
1,356,431. 29
14,350,300
248,000
18,000.00
162,860
3,832,427.75
186,402. 18
4,854,670. 70
682,060. 20
3,068,833. 28
Cedar Rapids
3
6,325,397.58
4,162. 73
400,000
61,0(8)
1,763 19
442,556.77
176,384.03
537.014. 77
Des Moines
4
12,454,227.96
24,567.08
205,000
1,339,000
22,450.00
5,220
451, 141.58
205,000.00
6,650.02
1,249,610.80
Dubuque
3
2,715,960.34
15,997.91
600,000
50,000
286,313. 75
1,8:37. 50
84,183.50
20,054. 27
129,9(18.09
Sioux City
4
7,491,573. 70
24,221.96
775,000
127,1810
8,010.00
500
1,074,600. 21
191,207.52
49,985.00
928,247. 41
Missouri
106
25,891,283. 49
245,075. 17
5,041,060
103,0(8)
32,000.00
106,470. 45
251,270
77,544.95
2,
1,264,728. 27
236,833.05
1,123,387.60
Kansas City
11
61.116,790.92
54,782. 41
4,470,000
485,(MX)
120,000.00
5,100
1,201),:393. 58
71,236. 42
4,102,563. 32
115,981.62
7,189,868.88
St. Joseph
4
8:897,291.50
26,991. 77
940,000
112,000
130,950.00
193,000.00
1,819,386.65
St. Louis
8
119,719,386.97
49,169. 41
17,304.790
432,000
71,000.00
234,500
116,255.63
9,592,589.61
3,744,554.94
259,741.57
30,396,389.87
Mid. Wn. States 2,035 1,591,359,958.80
6,071,312.93 191,919,600
2,468,167.40
11,396,700
2,95)),740
2,184,773.81_ _199,449,913.57
47,700,392.06
5,878,125.38 158,363, 11)6. 73--.
_
North Dakota
148
26,682,048.69
180,998.29
3,613,290
5,000.00
110
267,006
39,1180. 96 - 953,262.77
1,593,295.89
423,308.29
612,900.60
South Dakota
102
25,575,477.86
194,866.23
3,050,300
435,(X)0
125,450.00
54,400
29,544. 34
1,7:3:3,815.03
1,354,798. 19
145,442.75
1,202,407.35
Nebraska
231
51,042,287.01
649,619.24
7,901,820
53,000
42,097. 77
48,14(8)
64,449.00
989,702.25
2,289,825.09
232,314.46
1,698,921. 19
Lincoln
4
6,397,459 15
29,832. 16
663,100
51,187.23
2,000
4, 1(8)
6,000.00
21,449.32
362,959.:30
1,044,293.39
Omaha
7
29,193,9(1.3. 22
103,403.55
2,280,000
875,000
150,000.00
1,5(8)
34,323.42
2,739,760.66
917,082.85
12,728.95
4,181,0'22.96
South Omaha
3
6,267,678.44
73,877.60
6.30,000
1,000
117,983.39
3,5(8). 00
102,726.38
34,249.25
1,283,132.72
Kansas
201
49,341,811. 76
486,461. 76
8,601,040
612,000
50,010.00
137,660
119,886.33
3,395,582.26
1,935,237.85
1,627,950.13
324,334.70
Kansas City
2
3,810,442. 44
5,141. 73
399,000
1,000
2,500.00
345,595.97
146,250.00
1,411,257.63
Topeka
1,883,986.03
2
6,318). 52
300,000
151,000
511,823. 34
19,000.00
29,710.01
3,382.75
976,248.80
W ich ita
3
3,897,611.80
16,807.94
325,000
3,000
25,780
611,340.25
132,556.05
1,592,370. 64;
Montana
26,029,904.26
58
319,077.57
2,905,700
821,000
5,(XX). 00
55,
(MX)
1,624,213.45
10,697.82
1,006,500. 20
297,866.66
1,546,007.06
Wyoming
29
11,516,055.34
213,027.29
1,460,050
19,000.(X)
288,000
54,000
7,410.00
487,557.43
349,999. 36
424,095. 16
62,528.31
116
Colorado
28,303,512.89
201,218. 74
4,858,010
208,900
58,000.00
125,000
6,209,337.98
54
28,805.
1,189,237.30
1,159,825.40
187,538.51
7
Denver
27,260,386. SI
213,307.50
2,775,000
1,202,000
500
4,510.00
8,7(X),679.94
320,403.82
5,043,132.26
285,800. 14
Pueblo
3
3,780,3.51. 92
27,4100.05
480,(XX)
81(88)
5,000.(X)
2,532,946.50
13,448).00
56,750. 73
1,502,887. 20
42
New Mexico
10,653,289. 27
64,684. 25
1,569,000
351,000
17,0(8).(X)
27,219.:37
446,875.85
&51,(X)7. 75
108,490.57
1,457,138.68
266
Oklahoma
36,864,611.03
548,619.85
6,567,810
268,0(8)
30,000.00
32,830
53,559.42
3,341,385.91
2,419,045. 20
2,232.049.09
255,150.54
Muskogee
4
3,547,858.92
54,250 96
575,
(XX)
150,000
8,050.00
157,516.45
59,300.(X)
13,340.81
728,84141. 55
6
Oklahoma City....
7,003,800.80
24,377.64
649,000
203,000
5,769.55
1,603.344.32
23,650.00
170,539.91
1,690,096.78
Western States.. 1,234 -- 359,062,537.64
3,413,562.87
49,CO3,12()
6,872,000
558,514.55
539,680
36,524,173.07
487,786.20
14,944,075. 15
2,443,227. 42
31,414,603.70
Washington
211,543,676. 16
67
197,0577- 1
8326,188)
2,498, 110
113,0(8).00
11,000
2,
15,496.05 - 919,301.99
1,017,512. 79
261 2.57. 88
283,96.5. 75
Seal le
25, 182,297.64
6
39,419.67
(XX)
985,
1,848),000
4,600
6,380. 75
:3, 983,890.81
247,(113.70
31,420.04
2,979, 143.01
Spokane
14,310,273.97
5
38,593. 43
(XX)
2,650,
150,(X10
1,000.00
13, 2941.87
1,234,484.91
969,845. 11
95,653.01
1, 1:36,0410.07
Tacoma
2
5,313,835. 13
25,062.57
500.(XX)
?25.(X10
3,5(X). 00
727,646.37
155,(XX).00
45,230.06
460, 182.93
Oregon
73
19,4(0,537. 48
303,171.36
2,561, 7C,0
109,000
27,000.00
211, 222.32
230,840
2,848,432. 72
1,430,178. 48
155,934.58
471,099.99
80 837: ;1.(81
17;41837; 77
4
Portland
2
24.453. 79
2,1400,000
1,250,000 .....
54. 100
31.676. 38
2,757,958.85
229, 175.00
49. 1301.0.5
3.389. 249.01
California... •
184
644,479. 10
13,331,9.50
272,000
71,000.00
38.5, 160
169,877.84
16,377,507.09
5,130,244.85
490,867.60
2,546,737.40
Lai Angeles
9
38,334,790.09
197,488 33
5,100,(8)0
357,(X1)
212,1)00
103,452. 45
4,708,264.80
735,129.76
71,493. 42
4,654,82'2.07
10
San Francisco
105,852,341. 16
434,829.57
21,524,000
521.0(10
218,000
15,415,434.24
471,554.39
4,685,663.68
771,403.36
10,272,429.36
Idaho
13,541,729.50
46
191,730.82
236,000
1,984,(XX)
7,000.00
69,0(1)
1,094,703.56
29,287. 41
808,165.54
317.627.50
518,722.38
Utah
16
5,492,283. 48
158,546.39
8.35, 750
1(8),000
61,000.00
1,397.50
513,556.54
203,645.46
100,705.23
187,101.78
Salt Lake City.
7,589,127.88
5
.
193,305. 18
1,750,000
290,000
10,5(X).(X)
1,232,515.05
289,189. 77
9,9410.65
1,109,955.8.3
11
Nevada
5,301,892 47
75,179.57
1,579,(XX)
52,000
10,000.00
15,(121.52
571,760.68
164,178. 19
99,270. 13
243,937.46
Arizona
4,984,674. 47
13
74,589. 17
735,260
201,000
10,000
554, 1:52.37
10,395.90
476,821. 21
28,068.43
615,449. 44
Alaska
2
498,526.35
26,33.5.35
62.5(8)
275,000
25,000.00
8,872. 13
27. 210. 20
22.401.60
1. 200.00
14,962.57
453
Pacific States
364,662,109.55
2,624,242.71
58.897,:330
315,000.00
6,164,000
1.195.000
54,71)2, 160.3
16,829.404.94
920,531.51
2,529,2'27 94
.
28.883,759.0.5
Hawaii
41,321 091 95
13,582.26
294,250
235,400
288,561.00500.28
118,2(11.69
51,579. 24
6,123.45
10,455. 18
Porto Rico
1
113,781. 27
305.16
100,(XX)
6,9(X).00
140.1;75.(X)
900.00
Island possess's:nu;
5
1,434,873. 22 ---- 13,887.42 - 394,250
.
235,400
288,561 (X)
258,9341.69
7,460. 28
52,479.24
6,123.45
10,435.18
United States
7,277 -5,610,838,787.01
23,397,257. 78
694,214,820 - 768,400 12,168,275.64
40,
9,854,250
9,907,421.34 995,475,144.31 228,840,419.09
24,168,885.00 416,385,546.96




Statement of Mar. 7, 1911.

3

Showing Their Condition at the Close of Business on Wednesday, June 7, 1911.
RESOURCES.
Due from
Due from apState and priproved reserve
vate banks
agents.
and bankers.
$5,181,139. 49
2114,939. 51
105,436. 24
3,857,054. 28
89,764). 05
2,738,604. 12
18,984,752. 76
426,303. 75
6,967,248. 77
39,318,129. 73
4,268,755. 13
279,462. 79
13,303,784. 07
406,796. 48
8,389,947.59
87,652,219. 58
5,798,639. 18 - 840,617.00
43,
41,231,241. 59
2,966,207. 30
7,545,159. 76
4,044,360. 13
294,131.93
3,133,825.09
24,977,796.63
2,122,632. 27
55,212,994. 32
15,452,013. 64
49,938,497.00
2,627,622. 27
24,898,151.89
77,298. 39
1,176,626. 01
3,962,121.09
205,830. 10
1,407,568.05
8,483,506. 57
254,945. 22
3,650,377.99
808,i24. 48
227,985,153.61
0
6
7 ,126,- 34. 29

Checks and
other cash
items.

Exchanges for
clearing house.

Fractional
Bills of other
paper curnational
rency, nickels,
banks.
and cents.

$114,937. 39
$337,081
$114,894. 30
302,40!
295,977.07
145,127
137,702. 40
1,440,054
375,620.62
609,885. 27
(148,446
14,458,874.58
779, 105. 38
342,022. 70
259,137
19,091. 19
406,614. 74
920,340
424,634. 18
15,698,079.03
4,072,586
2,381,289. 79
886,179. 23
2,101,675
I,021,469. 28
2,356,546
6,634,452. 45 192,900,313.92
110,895
172,005. 74
74,206. 77
114,295
1,728,418. 17
303,841.03
1,622,6614. 17
1,030,5.57
1,311,994.67
501,593. 25
3,938,OR1
1,731,976. 41
1,148,820
81
16,362,593.
2,413,019. 52
4,225,272.85
1,706,809
253,774. 56
10'2,084
52,429. 21
39,466 44
135,013
4,326.06
121,884. 89
692,440
3,169,020. 26
250,242. 11
2,275
12,756.94
806.64
835,915. o2
28,980
229,968.06
13,468,470
14,387,102. 83 222,473,492.63
_
726,456
803,810.09
375,719.61
2,866,004.54
8,113,978.88
460.607
118,442.63
194. 772. 17
627,403. 13
5,252.222.86
2114,088
33,210.76
416,858. 45
1,172,184. 15
2,190,423.75
263,600
197,690.68
110,010.30
1,826,433.13
740,426.48
5214,284
831,213.36
273,714. 10
2,328,738.06
4,575,673.50
43,171
117. 14
134,994.82
140,009.97
525,757
279,211.01
118,731.24
4,339,727.57
1,368,141.49
931,194
205.916.90
148,381. 14
4,549.361.02
1.028,125.88
66,769
14,270.70
69,546.92
2,957,914. 41
987,265. 11
160,794
42,956.29
58.865.70
2,718,152.28
451,750. 71
97,942
1.429,245.85
57,919.95
2,425,845.70
3,437,974.86
1,321,356
879,791. 77
1,152,800.30
19,150,056.20
2,183,024. 19
2(12,2i1)
140,169. 44
208,092. 24
2,255,033. 10
491,578.30
162,382
342,226.50
10:3,212.73
2,095,045. 48
$13,387. 42
98,255
6,083.64
892,774.09
52,485. 44
138,542.57
523,035
212,097.16
23.626.97
4,250,334.31
1,192,945.89
174,115
129.668.99
83,739.30
2,351,566.97
354,388.(15
36,068
43,601.43
79,861. 36
482,031.39
79,524.26
206,880
197,259.80
114,980. 48
3,900,238.70
980,078.22
537,664
10S,655.01
248,897.34
5,707,183. 13
256,322.81
523,720
597,791.49
42,311.27
5,253,726.35
1,200,119.49
941.552
626,579. 18
460,796. 17
8,714, 149. 37
1,919,133. 18
8,809,949
7,269,882.68
4,395.439. 32
95,
- 23,509,925.05 - 154,011.32
2,572,578
667,925.50
(1641,934. 27
24,497,667.30
134,476.88
358,500
819,013.85
(p1,550. 71
8,823,798. 49
1,026,882.72
852,077
1,063. 492.08
140, 188. 11
11.964,052.35
2,725.377.33
306,8140
289.788.89
44.889. 45
2,586,434.07
205.1)71.39
1,598,.590
241,442.25
591,134. 72
20,410,482.29
810, 195.66
533,686
817,539.33
360,405. 12
5,650.824.29
1,775,518.93
1,771,156
563,214.46
774,906.34
31,417,692.43
2,208,605.30
1.232,680
329.05
14,336,
193,271. 11
13,977,837. 23
632,063
220,490.49
225.848. 22
11.262.909.08
1,408. 340.55
4643,75.3
660,209. 2,5
52.367.89
7,045,748. 44
2,039,656. 10
634.137
81,010. 18
269,438.53
11,795,244.38
549,088.53
167,146
748.633.67
103,612.98
6,831,677.35
1,372.856.ti2
(1)1.023
191,36/4. 21
402. 13(1.37
13.807,484.33
1,211,027.20
270,0(8)
1,800,113.23
121,4)44. 76
6,600.170.54
1.496,375. 41
204,331
901,396.29
158,837.25
4, 180.021.00
1,220, 170. 49
639,923
180,228. 11
563,071.66
1,065, 461. 20
15,492,669.91
78,550
96,299.33
10,493.94
1,020,497.37
259,929.61
123,550
340.48
187,
44,045.78
1,956,533.37
180,361. 11
23.003
20,832.65
6,708.62
477,276.69
8.5,624. 45
49,271)
145,588.69
50,905.69
1,829,491.64
653,638.42
212,869
56.968.31
178,845.55
751, 103.88
5,372,981.45
335,28.5
2,923,827.19
352,66.5. 44
4,927,723.87
15.596,475.83
141,007
325,639.48
41,825. 24
2,775,713.95
5.54,591. 28
1,612,749
2,689,437.48
118,668.51
7,487,792. 26
15,417,89C
30.1)28,128.45
5,523,796. 26
211.395.846.56
50,129,306. 42115,775
92,5(15. 37
109,499.99
214,381. 76
2,771,075.72170,391
54,5414. 47
140,596. 24
289.847.80
4,772,004.00
375,831
74,765.61
229,977. 76
11,136,190.05
269,674. 45
76,670
46,792.56
118,934.77
314,633. 38
1,019,925.52
_145,711
861,823.65
262,286.95
1,851,077.59
6,013,724.39
121,826
526,774.72
1,844,230.07
334,976.57
495,292.39
614,146
205,361.03
77,771.61
13,174,959. 48
869,235. 10
10,340
3,987. 49
56,877.03
631,644. 77
245,807.66
33,860
12,592.84
44,109.87
309,542.04
18,304. 15
69,379
21,812. 39
120,412.52
1,053,158. 17
69, 141.42
284,407
124, 194.55
52,960.54
5,473,786. 22
918,635. 42
62,998
29,660.09
34,539.63
1,809,472. 30
144,037. 33
289,1164
123,610.50
137,966.32
7,877,451. 20
483,683.58
678,934
1,040,857. 29
194),062.85
6,569,097.06
1, 218,255.61
104,285
46,562. 21
9,825. 36
1,049,123.63
208,565. 61
1)1,428
36,701.46
78,034.83
2,482, 174.86
246,348. 80
:396, 253
187,254.56
273,138.94
8,367,495.50
357, 7(8). 08
.55,605
:37, 189.97
1,399.07
747,268. 40
47,516. 70
151,170
143,868. 20
59,631. 37
968,772. 16
291,972.91
3,888,013
3,798.422. 45
2,
8,554, 111. 74 -78,071,005.54 - 205,442. 73
134, 110, 240.02- 114
121,079.89
5,833, 498. 75
41
563,857.
(1.55,998. 67
292,011
87,824. 36
4,05(1,905.03
1,958,556. 74
251,625. 21
293, 725
37,995. 71
2,228, 792. 40
94)0,875.64
43,366
8.5, 976. 76
5,454. 89
675,639.63
100,OSS.54
158,213
25,201. 20
193, 469. 01
5,009, 706. 45
571,519.66
1614,632
524, 143.51
130, 715. 17
2,883, 105. 78
622, 499. 52
481,681
403,969. 10
735,546.00
16! 699, 253.51
1,580, 72:4. 21
378,297
1,364,941. 74
737,821. 36
5,354,061.67
2, 496, 271. 12
475,787
2,851,034. 97
161,352.92
14, 256,557.87
15, 7914, 687.80
201,8.56
62, 704. 44
83,41)8. NI
2,370, 767. 52
397, 443. 47
10.750
:39, 163. 99
9,990. 11
1,1)77, 789.81
255,746. 71
89,9:42
266, 716. 22
23,605. 75
1, 284. 513. 12
341,098. 24
41,739
6, 281. 19
87,960. 44
97,641. 45
1,562, 132.62
103,14140
39, 192. 71
58,209. 25
2,020,031.01
151,972. 40
50,520
5,830. 45
17, 158. 76
54,219.89
2,
7,048,766.63 - 927,803-2,208,889.01
65,323.343. 93
28,890,606.80
3, 177
47,916. 24
96,278. 70
95,417. 23
3,260
5,032. 146
8, 1142. 85
5,440.09
19,794. 17
6, 437
5,032.54
104, 461.55
_ 53,356. 33
115,211. 40
195, 714, 143. 29




765,656, 132. OS

31,155,316. 27

286,321,804. 73

48,591, 154

Specie.

Legal-tender
notes.

$421,764)
$2,257,836. 21
$15,838. 46
412,215
1,2'21,969. 76
16,556.91
387,001
800,611. 15
9,840. 75
3,369. 256
6,466,320. 71
110,350. 26
3,993,993
25,679,761. 75
88,627.06
615,192
1,326,441. 23
18,776. 20
1,390,932
3,972,738. 09
46,311.08
10,590,35.5
41,725,678. 90
306,300772
6,543,403
16,752,268. 34
157,199. 78
53,334,109
276,481,282.91
107,691.87
1,978,422
2,307,78.5. 55
4,621.66
587,952
2,742,262. 85
20,933. 74
4,251,002
14, 733,040. 77
120,748. 40
7,583,351
23,529,935.91
268,870. 17
3,299,502
35,238,405. 59
88,204. 26
5,462,183
18,695,180.00
83,249. 78
192,926
605,258.00
15,843.00
716,752
1,560,095. 49
26,414. 47
402,005
5,707,773. 88
40,346. 91
7,700
66,872.00
160. 17
450,447
2,696,779.00
11,226.03
84,809,814
395,116,940. 29
94.5,510.24
2,141,570
4,049,359.72
61,876.38
808,669
2,807,829.90
38,102.20
591,672
1,348,871.30
211,626. 81
453,775
825,964.75
21,002.27
1,147,760
2,179,930. 27
63,862. 36
6,000
130,485.50
2,142.00
676,730
1.771,457.97
20,721.29 !
481,209
2,659,099.66
48,39.5.04
252,643
832,136.90
15,935..56 !
15(1,502
1,076,479.80
11,760.12 !
523,650
2,526,263.04
18,984.79 !
1,904,619
(1,914,178. 46
120,249. 16
466,580
1,906,658.85
8.648.91
448,665
1,059,674.40
17,575.76
51,065
479,220.90
1,448.91
545,380
2,528,920.38
18,237. 37
245,960
1,403,494.35
6,880.80
151,922
528,056.70
12,125.55
295,341
1,366,750.70
16,997.81
540.065
2,502.033.51
30,844.66
925,554
2,584,916.65
9,020.44
1,6.36,946
3,828,022.94
45,053.35
14,452,27745,309,806.65
616,491.54
4,091,089
10,444,284.62
112,142.96
2,249,465
7,:474,577.80
9,333.84
693.640
1,
7,127,880. 35
11,856. 38
741,367
2. 177,889.82
8,3341. 46
2,194,580
:353,338.68
7,
75,327. 79
896,121
3,604,363.85
15,250. 70
3,381),965
11. 27:3, 159. 12
135,921.87
28,807,932
(15, 167,563.05
71,551.24
1,820.849
4,643,129. 414
47,624.91
2,902,763
2,1194,205. 50
10,678. 71
1,064,56.5
4,700.998. 40
46,490. 76
2,058,068
3,836.743.20
16,698. 44
981.597
5,476, 111.08
54,077. 70
1,322,772
4,983,001. N)
9,631.66
643,689
3,374,683. 24
7,948.54
1,553.433
5,5,3:3, 466.98
56,770.24
155.527
747,250. 75
4,160.68
654,840
1,018,587.80
2.819.73
101,460
284,699.60
2,274.69
497,831
882,847.90
2,271.90
653,559
1,592,6(11.66
23,698.45
1,292,789
7,846,(1)1.15
21,576.90
261,190
1,203,209.05
6,019.04
5,651,936
26,238,301.00
20.644.12
189,578,895.68 --65,752,027
773,107.71
2143,486
1,505,074. 40
23,516. 30
364,325
1,81:3,453. 40
20,703.97
561,976
3,162,200. 55
36,376.62
276,553
585,884.30
1,702.09
1,163,045
3,596,069. 15
6,841. 19
218,905
591,4413. 55
1,671. 21
847,024
3,857,341.76
46,171.61
25,990
442,761. 40
2,271.92
39,516
430,069.95
1,436.52
40,844
717,960.60
4,174). 22
537,882
2,757,542.70
17,605.44
85,211
928,425. 3:3
6,334.30
676,269
2,927,081. 61
26,794.63
1,322,467
6,289,292.:35
17,840.08
67,750
937,724. 20
2,272.57
126,636
966,151. 35
8,695.63
5:36,951
2,677,858.96
6.5, 149.38
119,473
416,249.85
2,105.52
405,035
1,070,77:4. 55
11,749. 26
7,699,338
35,573,318.96
303,41)8. 46
_
125,592
2. 179,349.(10
114,018. 39
510,447
5,426,863. 50
14, 154. 75
68,810
2,519, 205. 4.5
13,627. 77
28,419
1,4)51, 370. 40
4,931.52
66,929
2,729,978.93
13,250. 10
87,445
65
5,9(19, 252.
6,228.51
7 (150, 1)42. 52
,
241(), 823
48,322. 41.
355,246
7,11)6,098. 75
27
32,082.
81,748
14, 315,977. 33
18,915.09
105,098
1,345, 737.15
11,713. 93
11,316
474,601. 60
3,430. 84
92. 170
1,1154, 162. 90
3,441. 23
1:4,905
459,574.00
1, 781. 32
(10,828
568,320. 30
3,919. 74
164,964. 48
13, 255
9. 15 !
1,912,061
53,515, 498. 99
193,827.05
130
264,652. 50
476. 89
3,6(8)
26, 715. 50
54.97
3, 730
291,365.00
.531.86
_
185,219,602
761, 111,507. 47
3,130,177.58 1Statement of Mar. 7, 1911.

Five per cent
redemption
fund.
$271,222. 25
236,055.00
229,625.00
991,455.00
387,400.00
224,625.00
623,891. 50
2,964,273. 75
1,7114,353.50
2,382,305.00
105,000.00
49,350.00
837,016.00
2,657,043. 70
804,100. 00
799,397. 50
73,725.00
206,293. 35
398,700. 00
12,500.00
258,650.00
10,348,434.05
616,150.00
391,620.00
263,822.36
212,715.00
4(11,83:3.00
32,500.00
228,889.50
351,762.60
144,975.00
127,925.00
162,375.00
986,176.00
126,700.00
69,400.00
18,750.00
131,750.00
98,250.00
60,000.00
119,625.50
463,932.50
202,5.50.00
436,288.00
5,707,989.46
1,372.345. 13
381,755.00
292,825.00
106,900.00
8.59, 467.00
276,377.00
1,221.210.50
756,850.00
402,510.00
94,950.00
380,261.70
225,850.00
443,010.00
157.500.00
127,150.00
677,222.90
20,(XX).00
6(1, 950.416
30,000.00
38,750.(X)
275, 150. 25
206,600.(X)
41,000.00
818,964.50
9,273,598.98
177,013.98
151,465.00
381,846.50
33, 155.(X)
103,:300. 00
29,200.00
416,729.50
19.950.00
15,018).00
16,250.(X)
141, 135.00
73,002.50
232,825.50
138,750.00
24,001).00
75,550.00
309,668. 75
28,750.(X)
32, 450.00
2,4(8),041.73
124, 105.50
46, 750.(10
132,500.00
25,000.00
124,95%.(10
140,000.00
662,362.50
255,488).00
1,076, 200.00
94,000.00
41,787.50
87,.500.00
78,950.00
36, 76.3.00
3, 12.5. 00
2,929,001. MT
14,712.50
5,000.00
19, 712. 50 _
:33, 643,051.97

Due from
U. S. Treasurer.
$11,536.50
2,000.00
500.00
60,125. 00
1,038,000.00
102,502. 50
126,174.00
1,340,838.00
153,777. 50
2,736,581. 30
4,000.00
46,897.50
104,825.50
43,5,890. 40
376,671. 41
13,380.00
5,811. 73
35,000.00
14,950.00
3,927,785. 34
414,600.00
24,450. 15
4,168.59
10,796. 10
33,856.80
2.50
2,752.00
19,567..50
1,352.50
12,500.00
24,100.00
51,815.45
2.50

Aggregate.

$59,918,815.96
36,024,141. 19
33,202,811. 44
214,296,382. 15
333,691,753. 83
49,762,668. 50
121,103,929. 96
848,000,503.03
466,080,204. 27
1,827,885,979. 31
56,100,186. 89
33,227,907.09
262,503,898. 32
627,8.35,247.97
438,905,292. 61
280,209,93,5. 03
17,529,194. 46
50,731,307. 36
109,395,453. 50
1,999,539. 30
50,491,678. 85
4222,895,824.96

STATES, TER R
TORIES, AND RESERVE CITIES.
Maine.
New Hampshire.
Vermont.
Massachusetts.
Boston.
Rhode Island.
Connecticut.
N. Engl'd States.
New York.
New York City.
Albany.
Brooklyn.
New Jersey.
Pennsylvania.
Philadelphia.
Pittsburg.
Delaware.
Maryland.
Baltimore.
Dist. of Columbia.
Washington.
Eastern States.

141,328,391.77 Virginia.
74,052,915.65 West Virginia.
53,813,731.68 North Carolina.
36,818,345.68 South Carolina.
86,056,762.97 Georgia.
Savannah.
4,573,216.96
50,193,862.68 Florida.
61,016,211.95 Alabama.
23,005.540.39 Mississippi.
27,023,302.07 Louisiana.
New Orleans.
43,844,888.97
188,1449.938.42 Texas.
Dallas.
29,212,796.91
Fort Worth.
21,931,275.30
Galveston.
7,054,090.77
2,000.00
T I ouston.
40.004,853.72
7,017.50
San Antonio.
17,420,057. 41
Waco.
14,460,450.95
1,005.00
30,580,.536.30 Arkansas.
1,826.00
70,651. 15/4. 69 Kentucky.
6,742.50
Louisville.
46,359,856.90
26,088.00
33,352. 50
97,088.811.41 Tennessee.
Southern St's.
313,995.59 1,159,340,997.55
_
211.3. 277,44410 Ohio.
48.545.44
Cincinnati.
112,221,559.42
6,097.50
Cleveland
100,834,204.64
149,300.00
Columbus.
33.301,161. 79
29,801.60
171,078,616.98 Indiana.
29,802.50
Indianapolis.
23,100.00
59,195,8.51.65
281,142.015.70 Illinois.
17,190.90
Ch i(ago.
545,790,744.74
974,000.00
18,007.50
113,777,541.73 Michigan.
Detroit.
141,5(X).00
51i,413,937.77
113,367, 188. RA Wisconsin.
3,502.50
Milwaukee.
47, WO.00
67,583,364. 28
6,957.50
128,219,703.00 Minnesota.
Minneapolis.
92,709.00
79,251,708.35
St. Paul.
76,498.00
48,578,526.54
150,403.244.08 Iowa.
16,855.00
Cedar Rapids.
10.340.987.75
Des Moines.
5,200.(X)
20.203,095. 71
Dubuque.
4,938,685.06
2,550.(X)
Sioux City.
14,820,941.04
15,205.00
46,105,635.5.3 Missouri.
y,
KanSiVi
112,443,661.53
5,001).(X)
St. Joseph.
17,474,814.96
48,(8)2.50
St. Louis.
226,606,873.37
1,757,024.94 2,799.371,5014.67
Mid.Wn.States.
_
3,052.50
39,666,276. 51 Nor)h Da 101 a.
5.(X)
41,679,841. 6.3 South Dakota.
4,926. 50
81,258,601.05 Nebraska.
Lincoln.
11,056,631. 17
Omaha.
22,500.00
54,515, 164. 53
12,678,427. 29
South Omaha.
86,644.220. 40 Kansas.
3,505.52
Kansas City.
7,580,818.04
Topeka.
4,785,972.92
R,735,595.02
18,000.00
Wichita.
4,054. 35
44,933, 170. 24 Montana.
105.(X)
18,055.508. 37 Wyoming.
14,703.(8)
55,217,975.70 Colorado.
3,000.00
Denver.
6.3, 274,2741. 71
10.930,045.07
Pueblo.
1,(MO.(X)
19,378,426.67 New Mexico.
00
786,901. 21 Oklahoma.
2,370.
65,
Muskogee.
6,749.941. 20
Oklahoma City.
14,509,001. 45
Western States.
647,433,695.08
77,221.87
418.50
37,396,6.51. 89 Washington.
Seattle.
48,303, 279. 20
2.50
Spokane.
27,046,304.55
Tacoma.
9,475. 103. 80
36,522, 737. 25 Oregon.
2, 335. 00
38,.53(1,533. 22
Portland.
14g,864. 414. 05 California.
22,0439.
Los Angeles.
72,4145, 160. 83
San Francisco.
212,232. 916. 74
600.00
23,471, 495. 85 Idaho.
300.00
9,575,8412. 94 Utah.
5,048).00
Salt Lake City.
16,322,696. 92
7.54)
10,462,812. 54 Nevada.
10,733,506. 40 Arizona.
1.271. 420.93 Alaska.1
Pacific States.
30, 733.05
702,703,897.04
2,862,626. 11
439,641. 87 Porto Rico.
Isl(i. possessions.
3,302, 267.99
7,447,598. 79 110,383,048,694. 31- United States.
!

Abstract of Reports of the National Banking Associations of the United States

4

LIABILITIES.
STATES,

TERRITORIES, AND
SERVE CITIES.

Capital stock
paid in.

Surplus fund.

Undivided
profits, less
expelises.

State-bank
Nationalcirculation
bank notes
outoutstanding.
standing.

$7,850,000.00 $3,293,700.00 ' $2,588,465.92 $5,388,232.50
5,235,000.00
2,829,249. 27
1,415,437. 18
4,901,432.50
5,210,000.00
1,911,263.74
1,860,785. 40
4,780,216. 50
30,667„500. 00
17,114,720. 38
8,934,962.92 19,880,687. 50
22,950,000.00
18,610,000.00 11,481,569 44
7,603,577.50
6,700,250 00
4,144,650.00 I 2,345,441.72
4,533,702 50
19,914.200.00
11,435,300.00
5,604,012.07 12,722,390.00
98.526,950.00 59,338,883. 39 -14,230,674.65 59.810,239.00
46,065,370.00
- 30,110,852.07 12,783,033. 49 35,238,865.00
144,833.00
121,400,000.00 130,955,000.00 41,2(19, 129.63 45,91)2,857. 50
16,516.00
2,100,000 00
2 200 000.00
526 631. 35
2,000,340.00
1,802,000.00
1,071,961.09
2,250,000.00
973,650.00
21,987,000.00
21,110,600.00 I 9,415,644. 13 16,518,750.00
5,291.00
66,933,270.00
66,208,414.63 15, 173,613. 47 54,993,761.50
598.00
22,655,000.00
37,550,000.00
4,353,237. 29 15,829,027.50
28,700,000.00
24,865,301.93
4,838,378.63 16,347, 167.50
9,373,985.00
2,158,500.00
582,372.81
1,544,820.00
5,291,700.00
3,542,346. 28
1,141,365 12
4,404,59 50
9
12,290,710.00
7,770,010.00
2,308,788.97
7,829,690.00
468.00
252,000.00
252,000.00
164,964. 78
239,700.00
5,850,000.00
4,330,412. 79
665,208 23 5,123,457.50
337,701,035.00 3.13,303,437. 70 94,234.328.92 206,946,679.00 I 27,706.00
16,618,500 00
10,784,780. 14 - 3,569,676.29 13,058,047.50
9,187,000 00
5,166,394. 15
1,346.547.77
8,152,777.50
8,385,000 00
2,351,260 00
1,606,5S9.62
6,493,907.50
5,410,000 00
1,806,931.02
1,260,663. 26
4,409,430.00
13,091,000 00
7,000,983.99
3,376,190. 49
9,677,642.50
SaVallIlah
500,000.(10
750,000 00
170,839. 84
650,000.00
Florida
5,893,590 00
2,369,800 00
1,004,328.51
4,630,557.50
Alabama
9,379,670.00
4,777,720.00
1,672,800.68
7,474,642.50
Mississippi
3,135,000.00
1,410,208.91
722,039.66
2,979,860.00
Louisiana
2,920,000 00
2,098,065 83
635,78.5. 73
2,576,752. 50
New Orleans
5,200,000 00
2,980,000 00
730,016.36
3,278,697.50
31,604,000 00
Texas
15,708,875.57
7,099,267. 10 20,209,752.50
Dallas
2,650,000 00
1,850,000 00
1,034,530.00
2,529,250 00
Fort Worth
2,875,000 00
1,825,000 00
572,360.77
1,615,250 00
625,000 00
Galveston
275,000.00
141,754.30
373,600.00
3,600,(X10.(X)
liouston
1,400,0(0). 00
700 071.85
2,628,350.00
2,100,000 00
San Antonio
1,005,000 00
272,289.21
1,952,800.00
1,450,000 00
Waco
:397,000 00
206,597. 38
1,200 000.00
4,435,000 00
Arkansas
1,792,867. 10
1,050,343.00
2,498,910.00
11,910,900.00
Kentucky
4,505,631.21
1,324,969 68 10,534,122.50
5.495,000 00
Louisville
2,685,001).00
97.5, 5i10 54
4,207.800.00
12,435,000 00
Tennessee
4,941,407.96 2,134,517.82 9,184,212.50
Southern States 159,349,660.00
77,631,925.88 31,607,805.8i 120,316,362. 50
Ohio
35,347,257.21i 16,570,530. 77
6,349,422.97 28,583,577.50
Cincinnati
13,900,000.00
7,300,000.00
2,486,229 09
7,598,695.00
Cleveland
9,350,000.01)
4,050,000 00 2,221,297.13
5,810,750.00
Columbus
00
3,750,000
1,313,500.00
536,950.39
2 554,795.00
Indiana
21,153 0(10.00
600,217.:34
8,
2,867,330 38 17,476,852.50
Indianapolis
6,3(X),000 (X)
2,504,000.00
1,483,1131.16
5,827,535.00
Illinois
30,820,000 00
16,146,734.87
6,809,653. 10 24,761,505.00
Chicago
42,400,000 00
25,789,500.00
5,988 247.91 14,444,395.00
Michigan
9,960,000.(X)
5,038,610.00
2,297,521.23 8,101,860.00
Detroit
4,750,000.00
1,750,000 00
910,772. 10
1,828,600.00
Wisconsin
10,830,(XX). 00
4,129,988 88
2,35.3.584. 26 7 865 500.00
Milwaukee.
6,250,000.00
2,6(10,000 00
1,076,666.58
4,425,795.00
Minnesota
11,871,000 00
5,527,933.57
1,858,200. 28
8,758,715.00
Minneapolis
6,700,000.00
5,690,000.00
1,166,700.43
3,015,800.00
St. Paul
4,100,000.00
3,190,000.00
727,450 55
2,369,450.00
Iowa
17,530 000.00
6,641,692.31
2,939,138.88 14,263,552.50
Cedar Rapids
4(0),000.(X)
305,000.00
170,010.04
396,997.50
Des Moines
2,000.000.00
625,000 00
210,341.25
1,214,697.50
Dubuque.
600,000.00
130,000.00
210,378.65
600,000 00
Sioux City
850 000.00
355,(0)0.00
120,125.35
769,797.50
Miisouri
6,555,000.00
2,508,803.80
798,635.76
5,607,292.50
Kansas City
7,600,000.00
1,948,203.42
3,221,000.00
4,263,092.50
1,100,000.00
St. Joseph
600 000 00
202,766. 13
914,897.50
20,400,000.00
St. Louis
11,975,(0)0. 00
4,616,567.87 17,036,437.50
Mid. W. States
274,516,257.25 136,622,511.54 .50,349,824.91 188,490,590.00
North Dakota
5,285,000 00
1,761,280. 20
571,924. 36
3,599,507. 50
South Dakota
4,205,000.00
1, 139,000 00
3,041,660 00
895,466. 24
Nebraska
10,412,500.00
3,875,000.00
1,58)3, 837.87
7,803,910.00
Lincoln
1,000.000.00
330, OM.(X)
663, 100 00
240,525.05
Omaha
3,600,000.00
257,500.00
2,
2,280,000 00
739, 239.85
South Omaha.
1,050,(XX).(0)
370,000.00
68
188,050.
624,902.50
Kansas
10,617,5(X). 00
4,321,940.00
2, 173,317.67 8,561,555.00
500,()00.(X)
Kansas City
250,0(X). 00
45,814. 90
399,(0)0 00
3(X),(0)0. 00
Topeka
150,000.00
38, 167. 62
3110,0(10. 00
Wichita
400,0(X).(X)
480,000 00
325,000.00
47,398. 79
Montana
4,875,000.00
2,654,518. 26
1,231,936. 14
2,750,917.50
Wyom ing
1,685,000.00
1,033, 2(0). 00
1,459,042.50
772, 272. 42
Colorado
6,565,000.00
2,925, 70f).(X) 1, 452,874. 33
4,823, 497. 50
Denver
2,675,0(0).(X)
3,450,(XX) (10
1,143,424. 74
2,759,395.00
500,000.(X)
Pueblo
390,(XX). 00
17,467.02
480,000.00
2,095,000 00
New Mexico
805, 400. 00
581, 784. 36
1,564, 430.00
2,(37. 766. 63
10, 372,500 00
Oklahoma
1,601, 131. 15
6, 444,1180.00
700,(00).(X)
Muskogee
192,500.00
98, 739. 15
575,000 00
1,550,000.00
201,100). 00
Oklahoma City
126,780.65
648,995.00
28,480, 405. 09_ _!L 53 155.99- 49, 104,59- .50
Western States. 69, 162,500.00
'
Washington
4,100,000 00
1,997,3(0).(X)
2,454,667.50
563,882.09
Seat 110
4,200,000.00
1,372,(0)0 00
504,302. 73
934,995 00
Spokane
3,400,000.00
775,000.00
413,66.3. 45
2,650,(X10. 00
Tacoma
.500,000.00
850.(XX). 00
111,099.4!
489,300.00
4.121,000.00
Oregon
1,930,247.58
764,955. 17
2,443,232.50
purtla nO
3,250,(XX).(X)
1,411,WO.00
702,211. 77
1,868,865.00
California
17,453,7.50.00
6,856,.5l6.57
3,436,826.54 13,186,077.50
Los Angelrs
5,600,000.00
2,618,000.00
3,749,480.59
4,745,047.50
28,750,(XX).(X)
14,857,250.00
San Francisco.
5,735,216.51 21, 109,330.00
2,640,000.00
1,315,8(X).00
Idaho
525,310.80
1,951,020.00
1,030,000.00
Utah.
384,677. 15
297,655.29
828,747..50
000.(X)
Salt Lake City
1,750,
860,000.00
206,670.97
1,700,000.00
Nevada
1,742,000.00
448,901. 25
158,745.68
1,545,390 00
1,030,000.00
642,000.00
Arizona
30.5,494. 90
731,410.00
35,000.00
100,000.00
Alaska 1
44,771.00
61,720.00
36,
79,666,750.00 — 354, 192.55 17,520,319.90 56,699,802..50
Pacific States
'hawaii
610,000 (X)
1(.1.5,440.53
46,401.08
272,247.50
100 000 00
Porto Rico
20,000 00
9,594. 78
100.000 00
Island possessions.
215,440.53
710.000.00
.55,995.86
372,247.50
United States
1,019,633,152.25 671,946,796.68 241,554,106.09- 681,740,513.00
27,706.00

Maine
New Hampshire
Vermont
Massachusetts
• Boston
Rhode Island
Connecticut
N. Eng.States
New York
New York City.
Albany
Brooklyn
New Jersey
Pennsylvania
Philadelphia
Pittsburg
Delaware
Maryland
Baltimore
Dist. o Columbia...
,
Washington
Eastern States
Virginia
West Virginia
North Carolina
South Carolina
Georgia




Due to other
national
banks.

Due to State
and private
banks and
bankers.

Due to trust
companies
and savings
banks.

Due to
approved
reserve
agents.

Dividends
unpaid.

Individual
deposits.

United
States
deposits.

t138, 134,/401. 59 $175,774.50
$11,243. 49
$206,178. 49
$231,970,87
$26,046.85 $1,387,107.37
18,437,659. 37
239,395. 73
116,2141. 54 * 8,651. 3(1
705,997.01
9,853.66
1,856,770.09
5,505. 1)4
17,906,474. 13
108,248. 18
.99
39,757. 16
101,674. 47
1,018,029. 43
126,979,972. 72
30,188.23
141,906.85
6,791.313.56 1,362,993. 13
587,040. 77
553,245. 96
177,497,569. 44 2,876,122. 43
8,257.58
311, 268,713. 45
5,377,824. 19 43,(18:3.817. 17 6,472,2'26. 67
5,848.75
28,986,798. 93
168,611. 97
465,414. 15
467,744.62
108,771. 98 .1,538,709. 13
65, 429,389.57
15,
292,317 97
904,573. 40
465,878.80 ! 423. 98
14.5,146. 39
3,655,220. 13
473 3721 665• 75 4,002,377.63
85,118. 37
39,267,714.59
6,220.890.02 59.330,9(16. 88 9,128,667.94
_
314,400,683.68
295,756. 25
862,612. 98
4,638,627.85
.5, 116,272. 22 11,023,527. 72 3,367,982.69
128,068. 47
776,964,5.54.82 1,732,556. 18
348,583,152.35 103,982,960. 57 244,495,324.89
2,446.00
14,202, 462. 44
176,637. 51
20,716,315.80
3,130,649. 22 8,171,597. 39 2,851,708.94
939. 50
19,419,27(1. 29
113,709.63
257,941. 32
222.309.05
249,569. 91
6,756. 102. 70
100,401. 36
172,652,304. 97
4,645,448. 49
501,288. 27
1,068,442.31 10,196,944. 27 1,776,531.80
414,052,112. 52
138,818. 59
556,085. 96
3,855,924. 90
992,561.60
636,373.03
2,415,895.52
20,15.5,85
191,285,644.68
511,998. 46
79,928,560.82 13,521,225. 60 61,601,944. 94 11,415,217. 10
56
7,388.
122,383,718. 69
308,000.00
43,128,424.86
8,377,296. 13 26,977,901.81 2,581,165. 11
1,333.30
9,(120,954). 96
308,526. 79
35. 573. 19
108,954.99
30,132. 10
532,903.00
34,925,217. 12
31,690.04
593,240. 21
73,882. 33
90,423.74
107,784. 40
80,011.59
25,804.54
47,(177,270.81
593,41(1. 62
15,269,316.69
4,374,208. 40
165,220. 74 1,818, 138. 40
7,
925,7(15. 70
19,642. 49
7,724.00
115,0)0.00
1,141. 15
21,661. 18
1,775. 50
24,984,764. 74 2,609,498. 46
2,323,299.82
201,916. 20
21,330.87
1.840,688. 34
762.301.96 2, 142,894,667. 42 8,362,S52. 26
524,232,790. 12 141,131,828.09 . 381,290, 136. 24 24,764,994.89
4,719,098.51
80,070,995.20 1,070.197. 56
5,877,554.50
1,093,619. 11
412,107.40 —12,469.05
6,124.53
1,190,361.20
(18,387. 14
45,651,421. 50
237,963. 36
1,842,584.08
436,995.28
13,963.52
1,827,512.91
25,984,285.92
175,242.08
466,558.25
3,0'25,650.10
242,917.60
17,126.00
784,813.39
353,374.43
20, 167. 78
18,722,254.97
168,863.00
2,(Y27,678. 58
1,724.669.52
2,343. 777.93
35,252. 70
547,247. 18
376,327.85
203,429.34
41,937,087.06
36.(0)
505,581.77
202,905. 14
1,088,296. 37
30,192. 76
128,907. 25
1,518,679.72
3,646,5(19.30
2,480. 25
336,164.91
29,635,299.83
13,386.02
324,642.58
1,291,793.48
33.217,709.54
912,454.39
123,894. 30
7,382.50
82,587. 12 '
257,495. 52
108,753. 43
2,420.00
13,207, 165.67
489,544. 10
452,214.01
9,765. 19
42,052. 77
5,223.66
1,459, 100. 37
1.595,455.97
333, 142. 77
14,871,9115. 42
29,040.45
7,0(10.00
4,821.684.53
3,971.00
2,653,914.22
1,735,844. 70
381,369.85
19,826,315. 72
225,751. 95
4,609,299.80
15,029.53
3,711,992.87
529,626. 4:3
823,983.54
98,834,114.60
440,892.51
3,251,723.50
1,352,945.89
2,163.00
16,331,318.83
171,537.69
7,735. 18
406. 72
3,390,000. 77
1,305,
160,477.99
10,185,779.05
2,000.00
580,788.60
608,653.06
655.82
4,040,490.39
13,801.30
6,139,475. 42
227.54)
2,873.232. 13
1,154,055.42
110,500.93
21,085,115. 61
46.4311. 30
1,406,937.98
623,481. 16
1,959.00
421,277.30
73,396.45
9,405,042.38
389,817.79
284,653.87
5,4:31. 19
200.00
4,250,094. 14
27,768.31 '
1,080,744.27
2,122,945.291
:413,456.84
4,956.38
17.032,446.02 i148,066.47
421,678.68
663,385.58
16,761.'22
195,89(1.88
31,77(1. 74
38,890,818. 2:3 • 667,5:35. 21
5.987,353. 11
5,506,009.30
1,29:3,:320. 96
11,064. 16
18,968,809. 14 ;4849,453. 78
588.36
4,571,527.02
5,657,003.77
1,442,415.34
9,602. 50
68,494.34
55,135,881.87
449,235.96
51.781,395. 77 49,327,797.95 11,496.578.33 2,317,102.86
108,412. 50
618,372,767.46 5,922,985.56
-1,922,762.32
3,147,469.07
3,851,423.96
72,506. 11
39,590.04
- 182,264,034. 11
478,881. 11
16,775,559.04
7,541,160.65 1 7,211,833.00
104,061.81
8,706.00
44,294,513.25 1,187,969.42
11,938,481.89
9,309,379. 45 14,440,020. 28
579,029.21
6,628. 50
39,959,254. 28
211,819.94
1,815,254 15
1,767,938. 33
842,00 .46
2,284.95
9
20,087,820. 26
66,711.01
2,043,729.86
4,004,113.36
2,898,191.06
9,562. 16
3,327.84
110,246,985.52 1,088,165.00
8,910,905.79
4,572,141.03
2,512,455.95
14,143. 48
3,395. 50
23,647,127.02
196,164. 15
2,155,146.01
7,892,:346.20
1,302,802.09
24,153. 19
26,594.75
187,015,259.83 3,097,711.83
158,709, 171.82 79,693,973.88 14,039,412.87
6,659. 50
202,715,945.68
659,895.60
1,106,903. 77
2,515,665.02
1,785,672.65
131,529.25
6,632. 75
82,180,468. 53
429.403. 33
5,059,681.61
6,459,425.64
5,292,093.20
328.04
41,262.29
31,620,856. 18
286,410.30
435,828.07
2,409,507.08
275,503.60
14,648. 15
4,624..50
84,300,766.93
190,494. 30
5,530,470.48
5,652,078.92
724,326.00
400,787.89
603.00
39,986,458.57
429,593. 10
2,187,8W.139
3,434,519. 15
114,363.98
2,738. 18
13,630. 29
93,470,816.86
175,676.83
12,655,599.62
9,793,388. 43
1,3(13,392.60
1,458.00
38,002,026.53
98,452.74
8,047,876.69
4,139,889.35
912,600. 41
120,771.00
24,021,724.87
482,978.46
2,814,483.77
4,605,840.95
6,426,964.07
55,912.96
17,579.50
93,400,313.35
242,452.00
2,443,565.05
1,706,354. 56
2,165,623.82
259.27
15.00
2,704,237.41
30,188.25
547,471. 13
3,
2,864,994.58
2,540,908. 71
150.00
6,989,323. 36
179,018.91
414.058.71
477,467.66
357,350 83
2,180. 14
2,101,150.98
40,025.08
2,486,718.32
3,019,356. 13
827,045.21
6,265,898.53
106,418,72
234,011.44
2,292,583. 43
63,6.56. 55
10,217.82
15,047.00
27,420,649.69
17,0(0).00
30,221,083.27 19,(124,652.53
5,863,513.09
219,147. 16
1:36.00
38,838,373. 71
370,877.78
3,147,940.43
4,571,498.55
342,73(1. 74 ,
46.0(1
6,482,895. 14
110,673.73
65,012,347.84 29,232,529 64
5,471,966.06 I
85,287.25
70.789,747.50
505,112. 25
349,616,901.97 220,728,.
273.59 _ 81,625,859. 19 I 1,675,904.75
369,729.73 1.458,80(1,648.09 10,682,093.84
459,03)).86
1, 212,499. 14
30,889. 47
659. 7710,026.00
24,707, 450. 19
228,845. 23
708, 221. 11
2,717,072.99
150. 119.54
6,250.00
27,931,849. 55
405,134. 70
739,334.91
3,547,969. 50
156,(113.11
2,074. 44
2,761. 26
52,370,923. 18
43,840. 44
1,717, 799.52
2,034,900. 86
125, 147. 38
11. 00
4,888,915.08
23,376. 27
10,688,962. 70
6,892,893. 13
197,600 58
3,327. 25
26,801,2)1. 37
599,834. 10
2,887, 285.57
2,063, 439. 30
37, 168 06
37,500.(X)
5,39S,081. 18
1,000.00
1,064),568. 42
4, 247,1)92. 48
167,8145. 36
8,632.38
29,551. 49
54,515,962. 21
319, 267. 90
1,237,5(38.07
2,042,380. 38
244,698.81
399.00 ;
2,859,951). 91
1,000.00
431, 229. 24
266,983.96
5,085 52
3, 143,506. 48
102,893.07
1,086. 470. 12
1,1119, 122. 66
94,250. 94
938.00
4,574,796. 11
3,000.00
1, 143,780. 11
925, 711. 94
183, 198. 45
40.31
3,895.01
29,656, 755.04
459,724. 57
287,338.92
476, 724. 87
108, 110. 75
300.00
11,(113, 433. 19
237, 251. 70
576, 189.94
384,1114. 64
715,710. 33
4,818. 42
1,636. 91
37.083,071.83
83, 148.00
9,137, 214. 94
1,962, 223.14
2,(115,1127. 10
229. 25
38,332, 472. 87
926,562.69
1,846,60(1. 31
591, 400. 10
660,323. 93
6,3.52, 423.09
30,0614. 71
697,349. 12
433, 146. 15
174,385. 14
1,671.62
320.00
12,639, 189. 91
151, 197. 52
1, 458, 121. 31
1,839,951.59
74,853. 81
15,621. 42
3, 139.00
39,569, 253.02
225,727. 78
261,997. 45
376,846.96
4, 414,694. 49
104,948. 17
1,907, 777. 24
1, 459,006.98
4,660. 39
756. 76
14, 269. 403. OS
181, 47.5. 26
- 38,332,845. 86 35,093,980. 77
- 5,746,328. 67
34, 275. 12
100, 237. 17
395,122,832. 78 4, 136, 246. 11
182,104.77
451,678.89
385,0111.46
2'2, 413.59
28l.001 26,771,740. 71
102,1459. 78
3,123,745.40
3,336, 183.36
1,745,248.17
2,330.00
31,298,799.08 1,067,066.13
1,475,016.97
1,801, 149.47
435,723.83
189.(X)
15,8.59,210. 15
83,.506.37
429,794.82
392.1010.63
70.00
6,475,868.94
125,7(10.47
253.294. 2.5
320.021. 28
119,964. 20
3.906.66
1, 302.59
241,012,S
9'4,90'4 56
:4,867,2711. 32
3,473,750. 12
1.086,311. 34
1,090.(1C
21,377,010. 12
674,537. 13
2,359,229.50
3,047,5(16. 28
3.900,538.22
857,466.22
54,457.11
95,628,726.27
267,663.80 ,
6,098,393. 20
7,690,781.83
3,721,957. 73
3,617. 74
37,62.5, 426.38
156,154. 79
15,837,(159.56 28,717,627. 18 12,730,788.26
2,590.88
284,11(13. 50
83,492,956. 89
533,101.11
444,699.00
539,
(101.54
54,928.99
300.82
1,85.5.00
15,215,040. Si
110,730.22
266,904.6.3
344,804. 41
131,294.04
400.00
6,093,641. Os
172,375. 16 .
1,482,548. 14
923,092.81
(157,318.57
6,965.69
15,:130. SO
8,437,569.92
117,509.99
197,999.03
333,751. 41
3.53, 167.44
1,290. 77
211.00
5,614,529.42
34,250. 44
154,409.93
200,939. 16
121,597.55
5(1.10)
7,357,385. 75
140,634.28
67,872.44
1,458. 26
42,310.01
(14i.()0
622,917.25
171,736.08 '
36,240,341:96 47,669,242.53 29,412,723. 99
937,310.64
365,913. 74
387,883,690.140 a,931,889.51 ,
6,779.43
29,366.89
11(1.110
1,327,837.(01
128.369.40
210,047.09
6,779.43
29,360.89
110.00
1,537,884. 15
128,369.40
1,039,478,769.70 5(0),201,379.84 568,902,103. ao 38,858,256.20 1,851,823.47 5,477,991, 156.45 37,166,814.31
-

1 Statement of Mar. 7, 1911.

Showing Their Condition at the Close of Business on Wednesday June 7, 1911—Continued.
Deposits
of United
States
disbursing
officers.

LIABILITIES—Continued.
• F
Bonds
borrowed.

$87,339.95
$75,000.00
59,291 41
12,849. 27
140,450.00
146,309.90
145,5(8).(X)
196,427.57
837,000.00
59,335.49
17, 194.07
30000.00
578,747.66 1,227.950.00
171,543.83
219,000.00
368,631.01 9,826,650.00
3.048.24
84.744. 10
126, 143.29
91,640.43
24,500.00
92.380.35
425,571.41
925,000.00
22,632.32 ,
106.40 I
23,369.49
973,000.00
114.551.54 2,088,000.00
1,524,362. 41 14,056,150.00
-499,533. SI 1,142,400.00
181,886.49
193,188).00
79,075.71
308,000.00
37,130.48
6,000.00
284,335.82
30,000.00
46,748.90
145.573. 18
137,000.00
87,906.79
18,000.00
16,203.25
38,000.00
2,002.90
28,248.05 1,320,400.00
394,621.98
35,000.00
9,040. 19

Notes and
bills rediscounted.

$11,185.00
61,061. 59
6,000.00
168,137.96
30,000.00
276,954. 55
321,309. 51

452,856.91
313,231.53
20,225.00
29,510.00
11,030.00

Bills
payable.

$382,887.50
105,(XX).00
101,(X)0. 00
617,460.:0;
1,:300.00
230,0(X).00
312.563. 73
1,750,211.59
883,613. 2ti
50,000 00
1,754,000.00
1,346,150.00
100,000 00
135,0(8).00
179,000.00
433,000.00
1,860,000 00

77,500.00
1,148,162.95 6,818,263.26
1,093,838.47 1,114,972.50
149,514.35
232,4153. 89
1,511,982.59 1,341,370.00
404,672.72 1,340,727.86
851,315.71 4,534,159. 17
499,708.93
162,265.95
356,500.00
153,909.04 1,499,250.00
10,000.00
125,000.00
159,800.00
312,500.00
550,000.00
882,822.67 3,881,713. 20

44,347.30
200,000.00
33,500.00
116,500.00
5,563.70
200,000.00
152,136.50
10,583. 27
113,2(X).00
125,000.00
33,621. 41
36,5(8).00
1,175. 74
120,000.00
69.011.89
703,700.00
142,489. 39
479,949.54
234,86.5. 42
127,488).00
200. 234.98
3.000.00
364,450.25
294,700.00
2.031.072.4)2 4,498,000.00 6,034.9:36.88 16,924,705.09
143.844.09 3,317,916.00 - 198,328.44
771,125.00
3,482. 47 3,716,8(x).00
362.87 2,786,000.(x)
46,
50,000 00
36,288.99
177,000.00
317,000 00
90,004..59
377,80().(X)
14,307.00
126,500.00
187,731. 28 3,012.540.(X)
83,027. 48
171,000.(X)
89,982.81
679,100.00
204.376.417
679,000.00
95,891. 44
6,7(8).(X)
40,591.91
50,000.00
164,86.5. 49
200,000.00
85,973.82
38,848.38
234,000.00
236,076.67 ,
'
50,608. 23
9,000.00
30,835.95
532,410.99
69,612.35
450,000.00
310,483. 77
100,165. 27
6,060. 21
1,400.00
98,024.92 1,28)4,600.00
811.75
21,190. 27
6,073.4)1
20,581. 28
16,344.99
15,000.00
.531,750.(8)
20.3, 750. 20
50,(XX).(X)
,
1,008. 14
31.829. 541 1,232,790.(X)
340. 22 16,2:38, 111.27
525,919. 41 4,630,48.5. 99
75,716.04
233,773. 42 1,486,800.00
141,790.98
48,006.85
249,372.50
26,533. 57
40,000.(X)
221,657. 42
377,611.60
28,483. 37
387,763. 26
183,155.54

30,0(8). 00

139,751.28

243,0(8). 00

25,0(X). 00
25,OW.00

41, 187.00
115.565.80
124,647. 57

674.992.22
217,000.00
262,066. 45

17,1)00. 00
14,500.00 I

139,762.04

35,018). 00
1,122, 165.96

1.064,351.38
44,100.00

4,668,(8)8. 73
83,000.00

106,200. 00

317,500.00
84,000.00
987,500.00

107,875.00

401,500.00
15,000.00

CLASSIFICATION OF DE POSITS.
Reserved for
taxes.

$2,058. 15
257. 13
116,382.68
427,348. 39
7,203.48
111,842.01
665,091.84
296,lin. 17
2,270,577.89
18,350 00
25,703.57
38,927. 18
33,591.66
20,725.02
180,739.54
4,191.87
16,040.84
9,324.86
2,914,274.60
107,602.01
3,500.00
2.59.47
24,446.85
16,134.42
16,434.78
44,715.S3
27,489.66
17,332.95
106,175.09
21,101.07

37,939.69
5,737.43
7,945.29
91,576.61
18,032. 13
48,127.10
594,5..50. 38
127,080.60
62,806.58
74,8.56.84
33,411(1. 25
66,157.79
94,081.29
20,047.59
460, 1415.8!
25,031.40
49,642.92
121,8i1.3. 44
79,561.07
68,644.23
25,277.65
5.5, 136. 17
03,779.77
15,188)18)
10,000.00
19,354. 44
19,831.87
292.64)
189,850.(X)
1,612,158. 31

146,113.00
596.30
161,689. 93
21,709. 86
47,614.83
123,569. 89
2 182,032. 53
,

1:01.(MO.(8)
281. 500.00
40,48)0. 00

274,337.6r)
235,500.00
7,0(8). 00

10,3.54. 25

Individual
deposits
subject to
cheek.

Other

$36,344,824.61 $1,057,758.05
16,416,304.30
1,725,489.78
16,269,343. 56
1, 132,443. 73
12'2,719,595.08
3,224,003. 41
171,066,039.91
1,661,823.98
185.78
25,036. 525. 12
3,790,822. 72
18,477.84
63, 126,072.09
1,591,106.64
186.399. 17
450,978,705. 27 14, 183,448.31
280,218.55
204, 169,136.98 47,600,779.84
65.5,939,210. 61
7,998,882. 41
14.039,375. 50
37,332 45
18,731,196.59
41,172.94
153,324.34
104,394,476.69
4,849.685. 71
68,704.63
310.225,841.50 51,300,598.73
186,810,934. 71
1,527,415. 48
28,880.86
1,247,844.47
117,6
00,0 93
919,311,936. 71
65,510.64
725.76
31,810,066. 19
1,435,854.44
45,212,2(13. 15
251,535.83
921,297.60
250,000.00
24,599.377. 25
236,544.52
781,854. 14 1,843,765,145.41 116,593,157. 46
82,999.72
64,827,949. 34
9,543,784.94
5,804. 41
29,410,019. 39
2,829,725.39
1.56.41
19,222,009. 32
2,693,761.90
24.06.5. 34
17,432,081.98
457,552.96
27,209. 29
36,410,266.65
2,000.794. 42
78.3,612. 14
129,761.65
590. 15
26,511,541.6(1
1,350,182.32
14,154. 26
29,86.3,042. 79
1,127,608.16
29,823.74
10,581,319.73
233,758.36
133.52
1,411,088.02
12,438,850. 4:3
2.500.00
18,525.00
19,230,970.32
47,845.05
3,160,012.07
89,465,84.5.7:3
2'2,552.63
22,863.89
15,762,179. 50
9,750,610.09
335,955.88
257,471). 55
3,762,345. 28
23,885.17
678,44(1. 12
18,974,213.66
874,343. 80
197,945.65
8,
105.00
3,523.96
4,073,804.09
1,558. 49
2,509,938. 25
13,309,488. 14
955.33
33,425,140.08
1,404,364.29
815.298.70
14,414,203.(8)
80,000.00
42.699,946. 22
6,095,683.93
:464.338.51 - 521.'Z23.783.28 37,278,0441. 41
91,694. 16
125,350,5.52. 18 36.384,014.76
29,683. 11
42,38.3, 435. 28
1,312,640.08
324.25
543,763.81
39,189,520.99
1,761,120.96
14,532,439.83
12,372.58
71,330.629.83 33,206,653. 37
1.392,287.81
21,898,340.80
46.950.95
126,298,364.46 28,229,086.79
5,011.715. 47
ISO.288,197. 35
5,060. 45
59,010,428.70 19,080,615.82
4,873,148.35
20,507,70.5. 25
76,037. 45
43,144,783. 79 13,539,919. 29
130,947.00
30,932,268. 5(1
7,254,726.65
112,758.66
1,156,635.89
45,404,030.44
220,000.00
3,456,167. 17
33,412,812. 45
1,5(19,953.97
19,976,303.55
7,448.89
44,885,04:3. 36 16,988,341).92
2,925. 10
50,447.63
1,712,931.65
745,670.67
6,218,271. 23
9,740.81
1,178,770.54
85,201. 43
4,325,0(C. 14
288. 11
613,919. 74
21,656, 127.64
2,614,215. 11
31,169, 182.417
534,821.93
5, 111, 114. 18
27,407.90
171,044.05
50,720,460. 72
763,898.61 1,058,636,721.51) 180,577, 122.08
1,094.68
15,521.07
12,500.00

4,618. 40
14,572. 38
871.99 ,
49,214. 33
24,967 23
11,032. 85
870.74
42,1)54. 89
10, 428.39
9,410. 00
339,721. 70
15,579. 49
9,000.(X)
22,9415. 28
1,310.00
6,732. 75
29.97.5. 00
19,227. 45
63,943. 22
170„571. 38
9,620. 97
12,767. 38
4,000.00
94.66
1,970.00

100.000.00
9,948. 18
590. 40
239.78

6, 161.60
5.97

492. 33
54,561.03
201,115.04
1,520. 70

12,174. 10
192,269. 47
510,331. 90
29,390 00
11,761. 47

411.33

557,037.50

258, 175.(X) 1,898,854. 25

367,757..58

757,862.06

11,288,827.23 36,858,748. 77

9,308,500. 17 36,690,528.91

6,493,5.14. 41

3,055,467.53

240,074. 22
- 46,074. 22




Demand certificates of
deposit.

$68,881.93
40,494.39
300.00
58,059. 23

1,779.65
24,368. 10
33,933. 75 ,
4,877.64 '
66,842. 29
21,000.00
18,871).07

48,106.93
282.043. 13
48,805.83
140,445.67
247. 159. 75
42,723.06
151, 239.78
171, 111. 58
14,786.59
19,733.09
_
2,009,598. 17
100,361. 91
709,609. 13
66,880.03
99,239.53
15,474. 22
517, 7181 95
23,996. 10
147,467. 8.5

5

803,046. Os
11,:339, 273.64
1,638, 166. sr)
12,356, 116. 16
6,226,372.67
28,207,669. 46
236,660.85
4,232,737. 57
244,653.04
20,443,006.90
3,645. 20
3, 107,408. 21
5,219,136.99
38,326,742.86
364. 278.71)
2,381,333. 36
341, 261.98
2,796,703. 30
439,913.00
3,836,691.1 2
2,690,392. 48
19,338,962. 32
237,208. 16
7,026,188.94
4,146. 221. 40
24,421,403. 15
8141,2(12. 87
27.852,620.80
863,128. 54
3,708,701.72
328,746. 17
8,655,652.09
1,677,854. 46
33,408,030.97
106, 451. 28
3,476,486. 72
82.030.99
7, 405,3:53.09
262.321,062. 38 26,465,431.80
1,253,773. 39
22,080,509. 14
463,280. 29
25,444,042. 86
1,872,931. 79
13,646,395. 22
63,400. 47
6,127,(X)1. 75
2,143,023. 81
20,823,997. 18
1,854,180.00
18,879,)431. )42
6,s37,0tn. 53
79,903,264. 78
818,749. 05
3.5, 228,847.68
75,860,029. 33
2,343,482. 93
1,863,494. 9.5
10,)409,609. 28
98,614. 27
4,518,770. 07
182,429. 96
7, 113,050. 54
4, 117,794. 10
708,98.5. 49
6,776,962. 77
184,997. 91
594,(X40. 94
25,659. 50
331,924,107. 46 20,734,6M.34
1,195,729. 55
94,005. 15
209,947.09
100.00
1,405,676.64
94,105. 15
4,470,255,202. 0.3 395,925,966.55

I Statement of Mar. 7, 1911.

Time certificates of
deposit.

401,866.96
88,860.99
412,992.40
239,182.06

Certified
checks.

Cashier's
check outstanding.

Total.

$112,794. 16
$217,557.81
$38,134,801. 59
36,142. 42
170,861.88
18,437,659. 37
7,735.98
83,958.46
17,1881,474. 13
423, 104.94)
374,086.67
126,979,972.72
3,134,868.76 1,634,830.79
177,497,569. 44
60,500.00
541, 172.61
42,778.48
28,986,798.93
45,000.00
535,962.30
131,248.54
65,429,389.57
1,248,402.41 4,306,781. 13 2.655,328.63 -473.372,665.75
.
1,710,253.33
640,488.51
280,025.02
314,400,683.68
293,307. 19 83,705,161.07 29,027,993.54
776,964,554.82
107,035.73
18,718. 76
14,202,462. 44
246,(18.3.46
400,223.30
19,419,276.29
1,964,507. 20 1,079,055. 19
364,580. 18
172,6.52,:304.97
51,169,624.22
431,246.60
924,741.47
414,052,112.52
597,249.71
440,086.35 1,909,958.43
191,285,644.68
1,469,318.48
412,981.57 1,653,482.24
122,383,718.69
207,232. 57
35,221.37
1,049.67
9,620,950.96
1,627,195.02
30,906.34
21,195. 13
34,925,217. 12
517,940.00
577,659.60
517,932.23
47,077,270.81
4,408. 10
925,705.70
9.260. 57
129,533.31
10,049.09
24,984,764.74
59,56.5.948.29 87,840,467.26 35,129,949.06 2, 142,894,667.42
5,175,404. 47
373,339. 22
150,517. 23
80,071),995. 20
13,312.067.17
31,115. 28
68,494. 27
45,651,421.50
3,815,558.55
58,054. 71
194,901.44
25,984,285.92
739,555.82
36,169.50
5(1,894. 71
18,722,254.97
909.86
3,268,
59,464.69
197,651.44
41,937,087.06
174,352.03
467.4)7
10:3.48
1,088,296.37
1,502,963.71
34,044.67
236,567.53
29,635,299.83
2,094,789.88
82,078.03
68
50,254).
33,217,769.54
2,356,300.58
11,769. 15
24,017.85
13,207. 1(15.67
920,309.86
36,737.59
64,979.52
14,871,965.42
371,778.55
73.726. 29
131,315.56
19,826,315.72
5,294,422.41
83,202.35
8.30,632.04
98,834,114.60
175,902.59
24,532. 73
345,840. 12
16,331,318.83
44), 221.82
22,273. 23
36,718. 0:3
10, 18.5, 779.05
8,800.00
500.00
11,374.56
4,040,490.39
1,104,182.61
22,115. 20
306,157.96
21,085,115.61
229,359.70
23.300. 16
9,405,042.38
80,093.07
148,134.22
12,791. 46
11,840.41
4,250,094. 14
1,143,319. 44
2(1, 782.90
42,917.29
17,032,446.02
3,953. 426.94;
58.3. 72
46,
61,303. 18
38,890,818.23
3,658,029.70
61,2)2. 11
20,075.63
18,968,809. 14
5,926.811.90
93,013.06
320.426. 76
5.5, 135.881.87
55,414.601.83 1,213.263. 18 3,243.072. 76
618.:372. 767.46
20,013,149. 40
311,304.64
205,013. 13
182,264,034. 11
161,477. 17
436,960.72
44,294,513.Z
413. 28
158,
67,556. 20
39,959,254.28
3,679,464. 14
74,033.94
40,761.39
20,087,820. 26
4,972,263.29
621.593.60
115,845.43
110,246,985.52
94,768.40
261,730.01
2.3,647,127.02
31,988,691.67
133,183. 20
365,333. 71
187,015,259.83
3,706,672. 45 2,139.689.77 5,569,670.64
202,715,945.68
3,994,827.89
55,217.34
51,378.78
82,180,468.53
144,321.82
93,080.76
31,620,856. 18
26,976,001. 25
549,690.76
90,371.84
84,3(8),766.93
1,346,208. 76
155,427. 5.5
297,827.05
39,986,458.57
45,843,135.85
991,57:3. 67
75,441.01
93,470,816.86
136, 226. 42
233,544.32
763,276. 17
38,002,026.53
1,796,492.84
71,781.91
607,192.60
24,021,724.87
31,256,397.641
88,055.81
182,4416.60
93,4110,:31:3. 35
916,720.86
3,226.67
20,910.60
2,704,2:37. 41
23,924. 15
1,457.31
6,989,:323. 36
899,512.07
450.)4.5
12,676.71
2,101,150.98
1,808,535. 83
14,896.33
32,198.80
6,26.5,898.53
5,067,914.69
9,681.73
73,005.89
27,420,649.69
4,106,887.68
57,946. 19
890, 142. 011
38,838,373. 71
710,714.55
2,698. 31
123,5441. 17
6,482,895. 14
12,351.284. 17
29,477. 73 1.516,MO.23
70,789,747.50
201,571, 101. 47 -5,210,246. 48 12,811,456. 47 1,
-458,806,648.
(V
-12,046,057. 10
339,040. 56
180,0:42. 81
24,707,450. 19
13,708,057.06
108,505. 19
121,004. 29
27,931,849.55
17,718,361.99
77,699.53
140,819. 53
52,370,923. 18
235,751.89
20,052.04
163. 212. 73
4,888,415.08
5,222,510.91
131,920. 17
759, 110. 35
26,801,201. 37
1,590,737. 57
2.3, 343. 12
672,947.08
5,398,081. 18
10,660,485. 27
91,599.50
217,997. 59
54,515,962. 21
57,162. 42
1,181.50
55,994. 84
2,859,950.91
269. 25
5,271.95
3,143,506. 48
233,308. 34
19,582. 33
45,301. 32
4,574,796. 11
7,391,936. 26
40,384. 74
195,079. 24
29,656,755.04
4,283, 190. 25
11,1)50.00
54.895.84
11,613,433. 19
8,130. 101. 49
128,1180. 73
256,665.06
37,083.071.83
9,056, 170.85
118,696. 17
488,722. 18
38,332,472.87
1.673,973. 15
4,041.94
102,577. 74
6,352,423.09
3,531,678. 34
10,505. 18
112,6(18. 13
12,639, 189.91
4,06.5, 502. 79
114,423.98
303, 440.82
39,569,253.02
76.3,600. 88
10,120. 61
58.035.00
4,414.694. 49
648.:395. 28
30.656. 71
102.987. 01
8. 269. 403.08
101.016.981.84 1. 282.653. 25 4.036,703. 51
395,122,832. 78
3,345,286. 74
48,285. 12
43,886. 32
26,771,740. 71
4,79.5,858.02
261,023. 84
334,594.07
31,298,799. 08
171,508.09
23,614. 36
144,760.69
15,8.59,210. 15
247,483. 5:4
12,658.90
25,324. 29
6,475,868. 94
2,892,891. 89
13,949. 31
138,966. 14
26,012,828. 33
188,212. 01
129,674. 8.3
325, 105. 46
21,377,010. 12
7,90'2,324. 15
344. 791. 57
1129, 7o0. 24
9.5,028. 726. 27
177,514. 77 1,400,314. 88
37,625,426. 38
3,319,895. 38 1,053,593. 27
915,955. 98
83,492,956. 89
2,412,914.46
31,454. 12
97,607. 70
15,215,080.51
1,398,289. 31
15,764. 53
62,202. 90
6,093,641.08
994,520. 93
42,745.91
104,822. 58
8,437,569. 92
735, 139. 73
10,901. 51
41,708. 59
5,614,.329.42
324,343. 68
10, 199. 22
60,882. 17
7,357,385. 75
2,000.(X)
5(17. 01
749.80
622,917. 25
28,730,667.92 2,176,678. 27 4,317,.581.81
387,883,690.80
35,509. 93
1,993.84 ----- 598.59
1,327,837.06
210,047.09
35,509.93
1,903.84 598.59
1,537,884. 15
.
447,583,213.69 102,032,083.30 " 62, 194,690. 83 5,477,991,156. 45

STATES, TERRITORIES, AND RESERVE CITIES.

Maine.
New llanipshire.
Vermont.
Massachusetts.
Boston.
Rhode Island.
Connecticut.
N.Eng.States.
New York.
New York City.
Albany.
Brooklyn.
New Jersey.
Pennsylvania.
Philadelphia.
Pittsburg.
Delaware.
Maryland.
Baltimore.
Dist. of Columbia.
Washington.
Eastern States.
Virginia,
West Virginia.
North Carolina.
South Carolina.
Georgia.
Savannah.
Florida.
Alabama.
Mississippi.
Louisian a.
New Orleans.
Texas.
Dallas.
Fort Worth.
Galveston
Houston.
San Antonio.
Waco.
Arkansas.
Kentucky.
Tennessee.
Southern States.
Ohio.
Cincinnati.
Cleveland.
Columbus.
Indiana.
Indianapolis.
Illinois.
Chicago.
Michigan.
Detroit.
Wisconsin.
Milwaukee.
Minnesota.
Minneapolis.
St. Paul.
Iowa.
Cedar Rapids.
Des Moines.
Dubuque.
Sioux City.
Missouri,- AACI7
Kansas City.
St. Joseph.
St. Louis.
Mid. W. States.
North Dakota.
South Dakota.
Nebraska.
Lincoln.
Omaha.
South Omaha.
Kansas.
Kansas City.
Topeka.
Wichita.
Montana.
Wyoming.
Colorado.
Denver.
Pueblo.
New Mexico.
Oklahoma.
Muskogee.
Oklahoma City.
Western States.
Washington.
Seattle.
Spokane.
Tacoma.
Oregon.
Portland.
California.
Los Angeles.
San Francisco.
Idaho.
Utah.
Salt Lake City.
Nevada.
Arizona.
Alaska.'
Pacific States.
Hawaii.
Porto Rico.
Island possessions.
United States.

Specie and Circulation of National Banks on June 7, 1911.
CIRCULATING NOTES.

SPECIE.

CITIES, STATES, AND TERRITORIES.

3

y.

New York City
Chicago
St. Louis
Central reserve cities.
Boston
Albany
lirookivn
Philadelphia
Pittsburg
Baltimore
Washington
Savannah
New Orleans
Dallas
(Fort Worth
Galveston
Houston
San Antonio
Waco
Louisville
Cincinnati.
Cleveland
Columbus
Indianapolis
De!rol t
Milwaukee
Minneapolis
St. Paul
Cedar Rapids
Des Moines
Dubuque
Sioux City
Kansas City, Mo
St. Joseph
Lincoln
Omaha
South Omaha
Kansas City, Kans
Topeka
Wichita
Denver
Pueblo
Muskogee
Oklahoma City
Seattle
Spokane
Tacoma
Portland
Los Angeles
San Francisco
Salt Lake City
Other reserve cities
All reserve cities
Maine
New 11ampshire
Vern)on t
Massachusetts
Rhode Island
Connectlent
New England States
New York
New Jersey
Pennsylvania
Delaware
Maryland
Dtstriet of Columbia..
Eastern States
Virginia
West ‘'irginia
North Carolina
South Carolina
Georgia
Florida
Alabama
Mississippi
Louisiana
Texas
Arkansas
Kentucky
Tennessee
Southern States
OhioIndiana
N1640" in
isconsin
Minnesol
Iowa
Missouri
Middle States
North Dakota
South Dakota
Nebraska
Kansas
Montana
W von ling
Color:010
New Mexico
Oklahoma
washilIgtstn Slates
n'e o ern
Oregon
California
Idaho
Utah
Nevada
Arizona
Alaska I
Pacific Stales
I !await
1'orto Rico
Island possessions
Total States, etc
Total United States




Number of
banks.

(;old coin.

Gold Treas- Clearingury certifiGold
house
cates to
Treasury
order (act certificates
certificates.
of Mar. 14, (see. 5192,
U.S. R. S.).
1900).

Silver
dollars.

Silver
Treasury
certificates.

Fractional
silver coin.

Total.

Received
from
comptroller.

On hand.

Outstanding.

_
$5,866,523.00 $140,61 i,580 *24,020,0(1) $54,325,000
40
$45,902,857.50
$47,796,600
$1,893,742.50
$50,340,912
$51,136
$1,2(6,131.91 $276,451,282.91
101,437.00
6,
14,444,395.04)
11
602,605.00
32,517,930
15,137,0(4)
5,435,000
2,200,000
176,187
385,911.05
18,351,098
65,167,563.05
8
4,040,785.00
17,036,437.50
15,116 280
268,3,52.50
480,000
106,335
116,597.00
6,378,284
17,304,790
26,238,301.00
---19 - - 068,145.00 188.245,790 29,93.5,060 56,525,OM
16
4
77,383,690.00
2,A54,700.00333,678
75,070,294
1,768,009.96 367,887,146.96 ---780,238,390
.
_
- - - --20
1 241 454.00
9,414,340
7,603,577.50
450,18)0
144,422.50
4,450,000
1,512,389
461,974. 75
8, 149,604
7,748,000
25,679,761.75
3
537,721.50
1,535,84()
2,000,34(1.00
60,(8)0
99,660.00
2,100,000
7,057
96,319
50,848.05
2,307,785.55
18.5,870.00
5
973,650.(X)
1,043,400
13,350.00
5,400
1,386,660
120,9:32. 85
987,000
2,742,262.R5
33
2,095,477.00
5,858,810 12,500,000
15,829,027.50
252,972.50
164,309
8,025,000
6,107,290
490,519.59
16,082,000
35,238,405.59
24
3,582,385 00
8,876,030
1,900,000
16,347,167.50
276,832.50
3,556,315
231,018
549,432.00
18,695,150.00
16,624,000
17
400,750.00
2,274,720
7,829,690.00
370,000
10,000
170,310.00
8,000,000
58,386
2,480,519
113,398.88
5,707,773.88
55,83.5.00
10
1,947,260
5,123,457.50
131,542.50
619,748
5,255,000
7,973
65,963.00
2,696,779.00
24,537.50
2
27,000
650,000.00
40,283
14,680
23,985.00
650,000
130,985.50
27,308.50
5
1,546,830
3,278,697.50
435,000
14,865
472,693
29,566.54
53,802.50
3,332,500
2,526,263.04
382,350.00
4
910,870
2,529,250.00
4,750.00
154,126
390,620
2,534,000
1,906,658.85
68,692.85
452,4(15.00
8
2(10,000
1,615,250.(X)
105,987
122,3'23
16,750.00
118,959.40
1,059,674.90
1,632,000
3
58,795 00
230,800
373,600.00
37,009
71,593
81,023.90
1,400.00
479,220.90
375,000
6
574,980. DO
1,12'2,610
2,628,350.(X)
186,821
422,021
222,488.38
2,528,920. 38
2,628,350
375,225 00
6
525,820
1,952,800.00
142,400
269,021
91,028.35
12,200.00
1,403,494. 3.5
1,965,000
6
159,565.00
179, 130
80,710
1,200,000.00
13,218
95,433.70
1,200,000
528,056.70
591,879.50
8
1,100,180
520,000
258,2(10
4,207,800.00
71,906
42,631.15
2,584,916.65
4,215,000
7,200.00
8
1,194,967.50
3,359,000
960,000
56,839
1,728,888
7,598,695.00
36,405.00
7,63.5, 100
74,883.30
7,374,577.80
1,619,817.50
7
3,249,750
740,000
135,506
1,291,906
5,810,750.(X)
231,750.00
90,900.85
6,042,500
7,127,880.35
891,906.(X)
9
815,920
318,430
101,770
2,554,795.00
49,863.82
45,205.00
2,177,889.82
2,600,000
7
1,123,462 .'"•0
1,863,500
455,:353
119,253
42,795.35
5,827,525.00
5,827,540
5.00
3,604,363.85
3
1.332,602 50
480,580
160,244
500,000
121,920
32,R80.00
70,400.00
1,828,600 00
2,694,205.50
1,899,000
469,815.00
6
1,855,000
1,396,343
64,726
4,425,795.00
53,859. 20
3,836,743.20
91,205.00
4,517,000
5
2,772,495.00
910,640
1,010,000
85,478
3,015,800.00
138,483.60
65,905
134,200.00
4,983,001.60
3,150,000
6
1,842,556.00
147,990
330,000
610,000
202,128
2,369,450.00
156,658
85,351. 24
173,550.00
3,374,683. 24
2,543,000
3
157,152.50
301,8.50
100,000
11,982
166,884
396,997.50
9,382. 25
3,002.50
747,250.75
400,000
4
407,8(6.20
375,450
50,000
58,568
101,826
24,880.60
1,018,587.80
1,214,697.50
124,302. 50
1,339,MO
3
155,340.00
60.000
3,820
600,000.00
14,539.60
51,000
284,699.60
600,0'0
4
153,750.00
280,000
400,000
18,402
20,695.90
10,000
769,797. 5()
5,202.50
882,847.90
775,000
11
1,484,305.00
1, W.)9,320
450,000
1,130,000
210,317
2,2(10,963
311,096.15
7,846,001.15
4,263,092.50
4,270,000
6,907.50
4
375,910.00
396,770
57,508
N7 717
31:3 2
5
914,897.50
1,203,209.05
75,709.05
940,000
25,102. 50
4
329,022.50
174,320
27,826
22,958.80
(163,100.00
585,884.30
663,100
7
1,573.182.50
969,440
10,000
118,09
781,529
2,280,000.00
9
143,825.65
3,596,069. 15
2,280,000
3
314,010.00
127.180
26,008
99,279
24,926. 55
624,902.50
591,403.55
630,000
5,097.50
2
146,932 50
92,050
150,000
9,397
34,952
9,429.90
442,761 40
399,000.00
399,000
2
167,525.00
100.510
120,000
15,930
14,171
300,000.00
11,933.95
430,069.95
300,000
3
105,347. 50
280,020
190,00
31,593
86,782
24,218. 10
325,000.00
717,960.60
325,000
7
3,958,890.00
1,90h3,090
102,828
194,168
70,316.35
6,289,292. 35
2,759,:395.00
2,775,000
15,005.00
358,160.00
3
512,380
26,060
26,121
14,803. 20
480,000.00
937,724 20
480,000
4
78,845.00
197,550
35,271
67.147
37,436.85
575,000.00
416,249.85
575,000
6
379,200.00
349,720
134,942
145,079
61,772. 55
1,070,773.55
648,995.00
649,000
5.00
6
4,338,695.00
47,600
759,000
90,580
26,079
164,909.50
5,426,863.50
934,995.00
935,000
5.00
5
772,150.00
218,730
1,253,000
45,382
128,078
101,865.45
2,519,205.45
2,650,000.00
2,650,000
2
731,745.00
60,860
186,000
22,677
4,080
46,008.40
1,051,370.40
489,300.00
500,090
10,700.00
4
5,216,565.00
36,770
464,000
53,675
21,423
176,819.65
5.969,252.65
1,868,865.00
2,800,000
931,135.00
9
4,976,435.00
196,850
960,000
98,332
627,378
147,103. 75
7,006,098.75
4,745,047.50
5,100,000
354,952.50
10
9,969,095.00
810,480
2,200,000
824,000
130,558
51,223
324,621. 33
14,315,977.33
21,109,330.00
21,524,000
414,670.00
5
1 007,726. 15_
446,030
70,454
18,885
111,067.75
1,654.162.90
_
1,700,000.00
1,750,000
50,000.00
322
59,152,066.85 59,559,190 19,870,000 22,306,000
5,082,927
35,276,300
5,146,217.03 206,392,700.88
158,286,490.00
162,201,090
3,914,600.00
381 - 160,811.85 71,
247,804.980 49,805,000 78,831,000
5,416,605
110,346,594
6,914,856.99 574.279,847.84
235,670,180.00
242,439,480
6,769,300.00
_
_
_
70 - 188,044.41
1,
591,360
29,493 -:548,9.52
99,986.80
2,257,836.21
5,469,400
5,388.232.50
81,167.50
56
528,236.46
255,780
20,399
:310,327
107,227.30
4,901,432. 50
1,221,969. 76
4,987,500
86,067.50
51
411,936.95
142,770
38,123
79, 195.21)
800,611. 15
4,780,21(3. 50
4,841,500
61,283.50
168
2,353,287.51
1,424,530
138,288 I
1,92 ,C0
14 38
601,555. 20
8 6 )0
6,464'i, 320. 71
19,880,687.50
20,198,000
317,312.50
22
385,662.82
461,560
5,807
383,157
88,254. 41
1,326,441. 23
4,657,500
4,533,702.50
123,797. 50
79
1,745,957. 70
892,520
20,000
54,284
990,434
263,542. 39
3,972,738. 09
13,050,850
328,40)0. 00
12,722,390. 00
446
6,613,125. 8.5
3,768,520
20,000
286,294
4,118,116
1,239,761. 30
16.045,917. 15
53,204,750
52.206,661.50
998,088.50
410
5,209,632. 72
5,2'21,530
870,000
261,628
,000
3,830,680
878,797.62
16,752,268. 34
35,771,070
35,238,865.00
532,205.00
196
1,948,080. 79
3,156,020
10,000
130,570
2,948,727
539,642.9$
8,733,040. 77
16,826,820
16,518,750.00
30S,070.00
773
9,346,918. 20
7,683,760
220,0(X)
15,000
776,077
4,252,568
1,235,612. 71
23,529,935.91
55,598,490
54,993,761.5)
604,728.50
28
140,507.95
131,900
20,782
260,116
45,952.05
605,258.00
1,562,500
1,544,820.00
17,680.00
90
473,(K)3.50
561,640
30,000
25,977
104,788.99
1,560,095. 49
4,483,490
78,897. 50
4,404,59'2. 50
1
7,990.00
41,260
250
364,rA6
16 112
1,260.00
66,872.00
250,000
239,700.00
111,3(8). 00
1,498
17,132,13:3. 16
16,794;. 110
1,130,000
495,000
1,215,284
11.672,889
2,806,054.35
.51,247,470. 51
114,492,370
112,940,489.00
1,551,881.00
128
1,856,665.85
972,080
216,451
- 734,343
269,819. 87
4,049,3.59. 72 - 13,283,01K)
13,058,047.50
224,952.50
106
1,199,138.52
833,670
133,966
493,976
147,079. 38
2,807,829.90
8,215,100
8,152,777.50
02,322. 50
74
417,287. 35
303,300
121,492
332,185
114,606.95
1,348,871. 30
6,504,500
6,493,907. 50
10,592.50
43
201, 173.50
149,810
77,2111
226,798
170,892. 25
825,964. 75
4,439,250
4,409,430.00
29,820.00
112
446, 159.00
544,910
27,000
260, 143
579,121
32'2,597. 27
2, 179,930. 27
9,728,250
9,677,642.50
45
50,607.50
515,1816. 32
554,160
2 874
27,
304,226
109,591.65
1,771. 457. 97
4,667,490
4,630,557.54)
36,932. 50
81
620,874.(X)
996,4.50
277,024
479,724
284,427.66 1
2,659,099.66
31
7,474,642.50
106,3,57. 50
7,581,000
134, 144. 00
289,320
120,000
92 11 6
:
106 717
101,600
94,956.90
832,136.90
3,002,460
26
2'2,6(X). 00
2,979,860.(K)
204,772.50
427,230
208,202
129,558. 30
1,076,479.80
2,602,500
478
2,576,752. 50
25,747.50
2,374,654. 55
2,190,450
758,505
8.50,852
739,716.91
6,914,178. 46
20,313,310
46
20,209,752.50
103,557. 50
531,464. 30
389,140
10,000
116,080
19,5,315
124,751. 40
1,306,750. 70
2,520,810
136
2,498,910.00
21,900.00
884,706.00
680, 110
310,000
30,000
1:34 3 7
272 112
333,199
129,506.51
2,502,033.51
10,621,850
100
10,534,122.50
1,252.941. 50
87,727.50
1,419,530
30,000
657,543
195,671.44
3,828,022. 94
9,268,760
9,184,212. 50
84.547. 50
10,639,587. 39 ---9,810,160
470,OM
57,000
2,795,108
_1.406
5,497,os
2,893,176. 49
32,162,115. 88
- 102,748.280
867,665.(X) 101,880,615.00
3.56
4,246,22:3. 45
3,005,420
480.000
229,0(8)
552,152
1,467,962
463,527. 17
10,444,284.62
254
28,895,180
28,
311,602. 50 --7 583,577. 50
3,cm,939.00
2,370,700
30.000
48.5,4139
1,070,154
350,906.68
7,353,338. as
427
163,487.50
17,640,340
17,476,852. 30
4,404,696. 22
3,440.760
765,000
567,778
1,492,851
602,073.90
11,273, 159. 12
25,034,960
97
2,463,681. 10
273,455.00
24,761,505. 00
1,231,950
50,000
188,239
482,639
226,620. 38
4,643, 129. 48
8,263,250
122
1,978,694.90
8,1(11,8(30. 00
161,390.00
1, 179,610
690,000
189,979
469,289
193,42.5. 50
4,700,998. 40
7,960,330
261
2,902,008. 34
7,865,500. 00
94,830.00
1,214,360
280,000
276,645
527,807
275,290. 74
5,476,111. OR ,
8,954,250
313
2,412,648.99
8,758,715. 00
195,535.00
1,577,330
375.000
329.4:31
574,795
264,261.99
5.533. 4116. 98
14.350,250
106
7.51. 712.50
86,697.50
14,263,552. ISO
322,570
45,000
154,732
201,862
116,725. 16
1,592,601.66
5,641,060
5,607,292.50
33,767. 50_
1.936
22,196.604.50
342,700
2,715,000
229.000
2,744,595
6,287,359
2,301,831.52
51,017,090.02
116,739.620
115.418,855.00
1,320.765.00
- 148
631,707.00
524,920
79,751
125,721
142,975.40
1,505,074.40
3,609,280
102
78.5, 171. 10
601,11.30
9,772.50
3,599.507.50
1(1,0(8)
108.407
174,240
134,005.30
1,813,453.40
3,050,300
231
1,548,465.05
8,640.00
3,041,660.00
780.450
165,000
187,159
304,999
176,127. 50
3,162. 2(X). M
201
7,839,310
1,701.979.25
1,096,350
35,400.(X)
7,803,910.00
40,000 ,
293,530
473.2.53
252,2'29. 51
3,8.57,:341.76
8,600,790
1,716.733. 70
665.720
39,235.00
8,501,555.00
76,349
139,845
158,895.00
2,757,542.70
2, R30,700
29
474,475 09
321,980
79 782 50
2.750.917.50
44.868
40,808
441. 240.63
928, 425.33
116
1,4(30,4)50
1,575,035.05
50,460
1,007.50
1,469,042. 5(4
148,114
226,758
126, 114.56
2,827,081.61
42
4,858,010
400,998.00
384.630
4,823,407. 54)
34,512.50
54.665
90.533
38,325. 35
4843, 151.35
266
1,5430,01)0
796.214. 10
877.940
4.570.00
1,564,430. oo
310,5410
38.5,007
308,127.86
2.677.858.913
6.488.920
6,444,680.(N)
44,240.(8)
1.193
9,630,792.05 - 6,004.080
215.000
1,301.003
1.961, 164
1,38.3,091.01
20.495, 130.06
-^
40,306,360
049.2(81.444)
257, 160.00
67
1.592,462.50
262,180
122,105
60,344
142,2.57. 50
2,179.349.00
2. 483,110
2,250.621.50
73
198,800
2,454,007.50
28,442.50
74,260
68,411
137.886.43
2.729,978.93
184
2,560,760
6,021,393. 10
71:i. 360
40,0(8)
2,443,232.50
117,527.50
297,315
138,824
439, 150. 42
7,650,042.52
46
777, 1:31.40
13,310,750
234.110
124,672.50
13, 186,077.50
146,000
49,054
48,822
90.619.78
1,345,737. 18
16
388,558 90
1,984,000
13,050
32,980.00
1,951,020.(X)
33.451
9,872
29,4419. 70
474.601.f30
11
38.3 885.00
835,750
37,750
828,747.50
7,002.50
11,425
5,076
21,438.00
459,.574.00
13
300,357.90
1.579.000
174,860
1,5‘5,390.00
33,610.00
25,446
41,797
23,059. 40
568,320.30
2
106,414. 13
735.260
15.070
7:31,410.00
3,850.00
10,899
20.700
11.881.3.5
__
164.964. 4R
62,500
- 412
61,721).(X)
780. 00
11.82:3.1)24. 43
1.649,180
40,000
146,000
623,_955
393,846
896,.562.58
15,572,56.4. 01
_
=23,20'2, 26.5.(X)
348,865.00
==- 4F
215,122.1
4140
35,03 0
257 1:3, 763.50
264,6.52. 50
1
1(10.48)
294,2.54)
•
25.000
- 22,002.50
272,247.50
250
600
765.50
26,715.50 I
100,000
100,1844). 481
215,9 00
?2. ,
25,480
35,280
8.57
14,529.00
291.368.00
.394,250- 002.50
372,247.50
22,
6,1496
- 78,254),489.38
52. 396,2301 4,590,000
927,000
9,001,599
29,931,315
11,735,026. 2.5 186,831- 659.63
,
451,430,760
446,070,333.1W.)
_
5,366,427.00
7.277 153. 411.301. 23 300.201,210 54,395,000 79.758
=
-00 --14,418,204
0
140,277,009
18.649. R8',3. 24 761.111.507.47 1 693,870.
240 ' 12.13g,727.00
681,740,613.00
__.
I Statement of Mar. 7, 1911.

•
Deposits and Reserve of National Banks on June 7, 1911

7

RESERVE REQUIRED, AND THE AMOUNT AND PER CENT HELD.

CASH ON HAND, DUE
FROM RESERVE
AGENTS, AND IN TIIE
REDEMPTION FUND.

HELD.
CITIES, STATES, AND TEERITORIES.

New York City
Chicago
St. Louis
Central reserve cities
Boston
Albany
Brooklyn
Ph ila(lelphla
Pittsburg
Baltimore
Washington
Savannah
New Orleans
Dallas
Fort Worth
1:alveston
Houston
San Antonio
Waco
Louisville
Cincinnati
Cleveland
Columbus
Indianapolis
Detroit
Milwaukee
Minneapolis.
St. Paul
Cedar Rapids
Des Moines
Dubuque
Sioux City
Kansas City, Mo
St. Joseph
Lincoln
Omaha
South Omaha
Kansas City, Kans
Topeka
Wichita
Denver
Pueblo
Muskogee
Oklahoma City
Seattle
Spokane
.
Tacoma
Portland
Los Angeles
San Francisco
Salt Lake City
Other reserve cities
All reserve cities
Ma tne
New Hampshire
Vermont
Massachusetts
Rhode Island
Connecticut
New England States
New York
New Jersey
Pennsylvania
Delaware
Maryland
District of Columbia
Eastern States
Virgin;a
West Virginia
North Carolina
South Carolina
Georgia
Florida
Alabama
Mississippi
Louisiana
Texas
Arkansas
Kentucky
Tennessee
Southern States
Ohio
Indiana
Illinois
Michigan
NV isconsin
Minnesota
Iowa
M issotiri
Middle States
North Dakota
South Dakota
Nebraska
Kansas
Montana
Wyoming
Colorado
New Mexico
Oklahoma
Western States
Washington
Oregon
California
Idaho
1'11111
Nevada
Arizona
Alaska
Pacific States
Hawaii
Porto Rico
Island possessions
Total States, etc
Total United States




Net deposits subject to reserve requirements.

$1,184,618,047. 13
366,639,276.61
128,389,336. 74
1.679.646,660. 48
231,130,408.65
36,755,004.92
24, 473,981. 17
291,052,311. 77
185,547,594.91
63,215,216.84
24,881.351. 43
1,479,255. 45
23,989,619.59
17,677,641.02
11,448,349. 26
4,548,645.28
25,813,999. 31
10.584,387.97
4. 466.608.61
27,095,546. 45
66,847,995.93
64,200,565.67
'21, 433,213.55
31.845,776.27
41.82'2, 494.88
47,161,504. 49
51,231,852. 28
32,574,227.91
8.049.073. 15
14,217.975.66
3.096,363. 14
10,842,854.95
79.593,951.02
11.700,560.59
7,240,220.67
37,909,613.09
7,996,448. 28
4,640,714.85
3,113,643.54
5,506,274. 23
44,310,747.89
7,631,176.38
4,336,686.11
9,384,220.65
34,330,203. 22
17,118,943.53
6,708,019.69
25,618,617.81
46.393,312.80
108,637,747. 14
9,871,813.57
1,849,526.744:5T
3.529. 173. 405.05

39,244,873.39
20,404,537. 46
18,660,443.90
133,231,355.95
30, 170,529. 30
67,291,732.00
309,003,472.00
324,531,810. 77
180,368,3.57. 36
409,738,071. 79
10, 156,872. 3.5
34,819,206. 43
950,214.94
960,564,533. 64
83,638.806. 29
46,059.353. 44
26,924,494.95
19,600, 150.42
41,314,329. 97
30,209,629. 76
32, 156,380. 43
13, 143,396. 72
16,525, 187.86
98,891,892.60
17,249,209.81
38,617,542.90
58,033,795. 19
.522,364,260.34
182,725,960. 28
113,5.54, 477.65
189,829,051.65
83,938,179. 37
85,335,797.01
93.965,784.8.5
102.355,8.54. 22
27.892,977. 13
879,598,082. 16
25,457,656.24
29,938,112.55
54,422,091. 22
57,020,239.52
29,529,987. 28
11,873,817.98
36,835,6411. 26
12,641,620.23
39,956,425.00
297,675,611.28
26,821,046.65
25,843,8.5.5. 94
100,502,817.54
15,221,312.57
6,:344,577.98
6,133,0.58.:13
7,261,977.87
738,191.39
188,806,838.27 i
1,570,844.28
201,7.54. 23
1,772,598.51
3, 159,8413.:396.20 !
6,689,018,801.25 ,

Required.

Specie.

Legal tenders. Redemption
fund.

$296,154,511.78 $276,481,282.9f $53,334,109 $2,382,305.00
91,659.819. 15
65,167,563.05
756,850.00
28,807,932
32.097,334. 19 26,238.301.00
5,651,936
818,964. 50
419,911.665. 12 367,887.146.96
87.793,977 - 3,958,119.50
57,782,602. 16 25:007761.75
3,993,993
387,400.00
9,188,751. 23
1,978,422
2,307,785.55
105.000.00
6,118,495.29
2,742,262.85
587,952
49,350.00
72,763,077.94
35,238.405.59
3,299,502
804. 100.00
46,386,898.73
18,695,180.00
5,462,183
799,397.50
15,803.804. 21
398.700.00
402,005
5,707,773.88
6,220,337.86
255,650.00
2,696,779.00
450,447
369,813.86
6,000
32,500.00
130, 48.5. 50
5,997,404.90
523,650
162,375.00
2,526,203.04
4,419,410. 26
466,580
1,906,658.85
126,700.00
1,059,674. 40
2,862,087.32
448,665
69,400.00
1,137,161.32
18,75(1.00
479,220.90
51,065
6,453,499.83
645,380
2,528,920.38
131,750.00
2,646,096.99
245,900
98,250.00
1,403,494.35
1,116,652. 15
528,056.70
151,922
60,000.00
6,773,886.61
925,554
2,584,916.05
202,550.00
16,711,998. 98
2,249,965
381,755.00
7,374,577.80
16,050,141. 42
7,127,88(1.35
1,683,640
292,825.00
5,358,303.39
106,90(1.00
741,367
2,177,889.82
7,961,444.07
3,604,363.85
896.121
276,377.00
10,455,623.72
2,694,205.50
2,992,763
94,950.00
11. 790,376. 12
2,058.068
3,836,793.20
225,850.00
12,807,963.07
4,983,001.60
1,322,772
157,500.00
8,143,556.98
643,689
3,374,683. 24
127. 150.00
2,012,268. 29
155,527
20,000.00
747,250. 75
3,554,493.92
1,018,587.80
654,840
66,950.00
774,090.79
101,460
30,000.00
284,699.60
2,710,713.74
497,831
38,750.00
882.847.90
19,80g,487.75
7,846,001. 15
1,292,789
206.6(1). 00
2,925,140. 15
261,190
41,0(8). 00
1,203,209.05
1,810,055. 17
585,884.30
276,553
33, 155. 00
9,477,403. 27
3,596,069. 15
103,3(8). 00
1,163,045
1,999,112.07
591,403.55
215,905
29,200. 00
1,160,178. 71
442,761. 40
25,990
19,950.00
778,410.89
430,069.95
39,516
15,000.00
1,376,568.56
717,960.60
40,844
16,250.00
11,077,686.97
6,289.292. 35
1,322,467
138,750.00
1,907,794.09
937,724. 20
67,750
24,000.00
1,084, 171.52
416, 249. 85
119,473
28,750.00
2,346,0.57. 41
1,070,773.55
405,035
32,450.00
8,582,550.81
5,426,863.50
510,447
46,750.00
4,279,735.88
2,519,205. 45
68,810
132, 5(8). 00
1,677,004.92
1.051,370. 40
28,419
2.5,000.00
6,404,654.45
5.969,252.65
140,(8)0.00
87,445
11.598,328. 20
7,006,098.75
385,246
255,(XX).(10
27,159,436.78
14,315,977. 33
81,748
1,076,200.00
2. 467,953.39
1,654,162.90
92,170
87,500.00
462,381,686. 14 200,392.700.88
40,024,665
7,975,234.50
882,293.351. 26 574,279,847.84
127,818,642
11.933,354.00
5,886,731.01
2,257,836. 21
3,060,680.62
1,221,969.76
2,799,066.59
800,611. 15
19,954,703. 39
6,466,320. 71
4,525,579.39
1,326,441.23
10,093.759.80
3,972,738.09
46,350,520.80
16,045,917. 15
48,679,771.62
16,752,268.34
27,055,253.60
8,733,040.77
61,460,710. 77
23,529,935.91
1,523,530.85
605,258.00
5,222,880.97
1,.560,095. 49
142,532.24
66,872.00
144,084,680.05 51,247,470.51
12,.545,8:34. 44
4,049,359. 72
-6,905,91)3.02
2,807,829. 90
4,038,674.24
1,348,871.30
2,940,022.56
825,9(14. 75
6,197,149.50
2,179,930. 27
4,531,444. 46
1,771,457.97
4,823,457.06
2,659,099.66
1,971,509.51
832, 136.90
2,478,778. 18
1,076,479.8(1
14,833,783.89
6,914,178. 46
2,587,381. 47
1,366,750. 70
5,792,631. 44
2,502,033.51
8,705.069. 28
3,828.022.94
78,3134,639.05
- 32,162,115.88
27,408,894.04
10,444,284.62
17,033, 171.65
7,353,338.08
28,474,357. 75
11,273, 159. 12
12,.590,726. 91
4,643, 129. 48
12,800,369..55
4,700,998. 40
14,094,867.73
5,476, Ill.08
15,:353,378. 13
5,533,466.98
4.183,946.57
1,592.001.66
131,939.712.33
51,017.090.02
3,818,648. 44
1,505,074. 40
4,490,716.88
1,813,453.40
8,103.313.68
3,162,200 55
8,553,035.93
3,857,341. 76
4,429,498.09
2,757,542.70
1,781,072. 70
928,425. 33
5,52.5,349. 19
2,827,081.61
1,890,243.03
966,151. 35
5,993,4113. 75
2,677,8.58. 96
44,1151,1341.69
20,495,130.06
4,023, 157.18)
2,179.349.00
3,576,578.39
2,729,978.93
15,075,422.63
7,650,042.52
2,253,196.59
1,34.5,737.18
951,680. 70
474,601.641
919,958.75
459,574.00
1,089,296.65
51;8,320. 30
110,728. 70
1(14,964. 48
28,330,025. 74
15,572,568.01
235,626. f14
264,1152..50
30,263. 13
26,715. 50
205,889. 77
291,36R.00
473,976,809. 43 186,831,6.19. 63
1.356,270, 160.69

421,766
412,215
387,001
3,369,256
615,192
1,390,932
6.596.362
6,543,463
4,251,002
7,583,351
192,926
716,752
7,700
19,295,194
2,141,570
808,669
591,672
453,775
1, 147,7(4)
676,730
481,209
252,643
150,502
1,904,619
295,341
540,065
1,636,946
11,087,501
• 4,091,089
2,194,580
3,380,965
1,821),849
1,064,565
981,597
1,553,413
653,559
15,740,637
253,480
364,325
561,976
847,024
537,852
85,211
676,269
126,636
53(1,9.51
4,019,76()
125,592
66,929
260,523
105,098
11,316
13,90.5
00,528
13,285
657,776
130
3,600
3,730
57,4(X),9tA)

761,111,,507. 47 - 185,219,602
_
'Statement of Mar. 7, 1911.

Available with reserve agents,
not exceeding 50
per cent of net
reserve required.

Total amount.
$332,197,696.91
94,732,345.05
32,709,201.50
459,(L39,243. 46
58,758,755.83
8,933,083. 16
6,414,137. 49
75,321,496.56
47,750,511. 11
14,211,030.98
6,386,719. 92
308,995. 47
6,129,802.98
4,646,293. 97
2,974,083.05
1,108,241. 56
6.366,925.29
4,099,271.32
1,222,010.09
6,998,688.95
18,17(1,919. 79
16,983,003. 55
5,612,590.S9
8,619,395.38
10,962,255. 36
11,902,924. 26
12,788,505. 13
8,153,725. 72
1,018,911.89
3,484,149. 75
788,204.99
2,755,410. 76
19,191,334.02
2,947,469. 12
1,784,042. 38
9,541),465.78
1,824,464.58
1,058,815.75
794,127.99
1,455,213.87
13,219,977.83
1,971,371. 24
1,092,183.61
2,477,030. 71
10,034,965.53
4,794, 13:3.39
1,779,829.03
9,079,803. 43
13,(8)0, 406. 42
28,515,543.72
3,024.059.59
481.364,283. 19
941,003.526.65
_

Per
cent.

Amount.

28.04
$332,197,696.91
94,732,345.05
25.84
32,709,201.50
25. 48
459,639,243. 46
27.
•37
69,379,284.48
25.42
24.30
11,936,367.31
26.21
7.423,924.98
89,280,504.59
25.88
49,854,912.39
25.73
22. 48
14,991,985. 45
7,056,253.99
25.67
2(1.89
308,995. 47
6,650,262.90
25.55
26.28
4,754,971.95
25.98
3,672,784.88
24.36
1,441,809.99
24.66
7,456,384.69
38. 73
4,099,271.32
27. 36
1,222,010.09
25.83
8,966,747. CO
27. 18
18,829,596. 29
26. 45
21,068,397.70
2(1.19
5,612,.590.89
27.07
10,427.686. 14
26.21
12,827,666.94
25.24
12,952,338.55
13,063,444. 14
24.96
25.03
8,325,543. 24
23.54
1,943,275. 12
24. 51
3,696,911. 17
25. 46
89:3,436. 29
25. 41
3,245,920. 54
24,941,865.98
24. 11
25. 19
4,281,113.00
24. 64
1,915,517.82
25. 19
10.876,138.54
22.82
2,683,738.62
22.81
1,120,346. 17
25.51
794.127.99
26. 4'3
1,825. 212. 77
29.53
14,319,606. 41
25.83
2,078,597.83
25. 18
1,311, 741. 25
26. 40
2,477,030. 71
29. 23
10,034.965. 53
25.00
4,949,307.85
26. 53
1,779,820.03
35. 44
9,079,803. 43
28.02
13,0(8), 406. 42
26.25
29,730,483. 20
30.63
3,118.346.02
26.03
541,707,457.06
26.66 1,001,346,700.52

Per
cent.
28.04
25.84
25. 48
27.37
30.02
32. 48
30.33
30.68
26.86
23.72
28.36
20.89
27.72
26.89
32.08
31.70
28.88
38.73
27.36
33.09
28. 17
32.82
26. 19
32.74
30.117
27. 46
25.50
25. 56
24. 14
26. 00
28.85
29.96
31.34
36. 59
26.46
28.69
33. 56
24. 14
25. 51
33. 20
32. 32
27. 24
30. 25
26. 40
29.23
28.91
26.53
35. 44
28.02
27. 37
31.58
29. 29
28.37

$28,697,601.08
4,541,875.61
3,034,572.64
35,979,488.97
22,793,750. 61
7,702,552. 10
2,980,843.92
140,0(19. 97
2,917,514.94
2,196,355. 12
1,396,343.65
559. 205.66
3,160,874.91
2,351,566.97
482,(131.39
3,285,668.30
8,165,121.99
7,878,(158.20
2,586.434.07
3,842,533. 53
5,180,336.86
5,782,263.06
6,325,231.53
4,008,203. 48
996,134. 14
1,743.771.95
372,045. 39
1,335,981.86
9,845,943.87
1,442,070.07
888,450.08
4,687,051.63
984,956.03
570,114. 35
309,542.04
680, 159.27
5.469.468. 48
941,897.04
527,710.76
968,772. 16
4,050,905.03
2,073,617.94
675,1)39.63
2,883,105. 78
5,354.061.67
13,041,618.39
1,190, 226.69
226.971,682.81
226.971,682.81
Not exceeding 60
per cent.
271,222. 25
3,369,:305. 25
6,320,129.71
16.10
8,131,963.95 20.72
236,05,5,00
1,694,775. 37
3,565,015. 13
17. 47
5,727,294.04 28.07
229,625.00
1,541.664.95
958,902.10
15.86
4,155,841.27 22.27
991,455.00
11,395,949.03
2,22,
22,2 980. 74
16.69
29,811,784.47 22. 38
224,625.00
2,5g0,572.63
4,746,830.86
15. 73
6,935.013. 36 21.33
(123,891.50
5,681.920. 98_
11,669,482.57
17.35
19,291,345.66 28. 67
2.576,873.75
26,264. 158. 21
51,483,341.-11
- 16.611 - 73.553.242. 75 23.80
1,764,353.50
28,149,250.86
53.209,335.70 16. 40
68,900.701.84 I 21. 23
837,016.00
15,730,942.56
29,552,001.33
16. 38
38,798,855. 40 ' 21.51
2,657,093.70
35,282,200. 24
69,052,530.85
16.8.5
88,983,324.93 21.72
73,725.00
R69,883.51
1,741,792.51
17.15
2,048,535.01 2 .17
0
206,293.35
3,009,952.56
5,493,093. 40
15. 78
6,445,261.93 18.51
12.500.00
78.019.34
165,091. 34
17. 38
342,017.22 36.00
5,550,931. 5.5
83,120,249.07
159.2- 3,845. 13 - 58
-1
16.
205,518,696.33 21.40
616, 150.64)
7,157.810. 66
13,964,890.38
16.70
14,9'21,058.60 17.84
391,620.00
3,910,369.80 '
7,918,988.70
17.19
9,260,341.76 20.11
263,822.36
2,190. 423. 75
4,394,789. 41
16.32
4,394,789. 41 16.32
212,715.00
1,636,384. 53
3,128,839. 28
15.96
3,318,887.88 16.93
461,833.00
3,941,189.89
7,230,713. 16
17.50
8,365, 196. 77 29.24
228,889.50
5,258,610. 44
2,581,532. 97
17. 40
7,010,805.04 23. 22
351,762.60
2,683.016.67
6,175,087.93
19.20
8,041.432.28 25.01
144,975.00
1,095,920. 70
2,325,(175.60
17.69
4,187,669.31 31.88
127,92.5. 0(1
1,410,511. 90
2,771,418. 70
16. 77
4,079,059.08 24.68
986,176.00
8,308,564. 73
18,113,538. 19
18.32
28,95.5,029.60 29. 28
119,625.50
1,480,653.58
3,262,370.78
18.91
5,681,95.5. 90 32.94
463,932.50
3,197,219. 3.5
6,703,250.36
17. 36
9,213.214. 14 23.86
436,288.00
4,961,268. 76
10,862,.525.70
18.72
14,615,406. 31 25. 18
4,805,714. 46 - 054.867. 29
44,
92. 110, 198.63
17.03 - 122,056,84(1. 14_ 23.37
1,372,345. 13
15,621,929. 34
31,529,648.09
17.20 j
40,405,386.05 22. 11
859,407.00
9,704,222. 78
20,111,608. 4(1
17.7!
30,817,867. 97 27. 14
1,221,210. 50
111, 351,888.34
32,227,222.96
16.98
47,293,027.05 24.91
402,510.00
7,312,930. 14
14, 179, 418. 62
16.89
18, 129,397.56 21. 59
380,2(11. 70
7,452,064. 71
13,597,889.81
15.93 '
17,941,069. 98 21.02
443,1)1(1. 00
8, 191, 114.63
15,091,832. 71
16.1)6
20,708,202. 41 22.04
677,222.90
8,805,693. 1:3
1(1,569,816.01
16.19
23,256,792. 79 22.72
275,156.25
2,345.277. 79
4,866,588.70
17.45
7,894,292.36 28.30
5,631,177. 48
75,785,120. 811
148,174,025. 36
10.85
206,446,035.67 23.47
177,013.98
2,184,980.67 ,
4,150,555.05
16.30
4,736,650. 10 18.61
151,465.00
2,603,551. 12
4,9:12,794.52
16. 48
7,101,247. 40 23.72
i 16. 12
381,846. 50
4,66 880. 30
8,
5,774.903. 35
15,242,213. 10 28.01
416,729.50
10,1102,879. 11
4,881,78:). 85
17.54
18,296,054. 74 32.09
141,1:3.5.01)
2,573,017.85
6,009,577.55
20.35
8,910,345.92 30.17
73,0(82.50
1,024,842. 11 '
2,111,4)40. 94
17.78
2,896,111. 13 24.39
232,825.50
3,175,514.21
18.76
6,911,090. 32
11,613,627.31 31.53
75,550.00
1,092,415.82
2,260,753. 17
3,654), 512.21 28.88
! 17.88
309,11415.75
3,410,277.00
6,934,755. 71
17.35 i
11.891.974.21 29.7(1
1,959,236.73
25,615,262.93
52,089,389. 72
17.50
84,338,730. 12 28.33
124,105.5 6
2,339,430.89
4,768,477.39
17.78
8,2(12,545.25 30.81
124,958.(X)
2,250,972.23
5,172,838. 16
20.182
7,931,572. 38 30.119
602,362.50
8,047,836.07
17,221,064.09
17. 13
25,272,511.53 25.15
94,000.00
1,313,518. 13
2,8.58,353.31
18.77
3,915,1882. 70 25.72
41,787.50
M5,939.51
1,073,644.61
16.92
1,605,494.91 25.30
78,950.00
51)4,105. 24
1,057,034.24
17.24
2,114,5111.62 34.48
36,763.00
631,520.20
1,297,431. W
17.87
2,685,942.31 36.99
3, 125.00
17,158. 76
198,513.24
26.89
198,533. 24 26.89
1, 166,051.50
33,647,376.54
17.82
51,980,763.94 27.53
_ 16,250,981.03
14,712.56
96.278.70
375,773. 70
23.92
375,773. 70 23.92
5,MO.00
8, 182.85
43,498.35
21.541
43,498.35 21.56
19,712.50
11)4,4(11. 55419,272.05
23. f;,5
419,272.05 23.65
_
21,709,697.97
271,195, 130.94
537, 137,448. 54
17.00
744,313,59:3.00 23.56
33,043,051.97
498, 166,813.75 - 1,478. 140,975. 19
22. 10 1,745.660,293.52 26J10

•

8

Abstract of the Reports of Condition of National Banks In the United States on June 7,9911, arranged by Classes.
Central reserve city
banks (59).

Other reserve city
banks (322).

Country banks(6,896).

Total (7,277).

$2,775, 712,376.53
19,503,134.61
451,518,690.00
21,281,400.00
2, 800,489. 19
5,681,240.00
6, 739,083.64
532,503,633. 51
125,017,866. 70
16, 963,530.96
92,067,957. 74
47,459,705. 92
478, 371,275.40
15,585,718. 78
12,685,177.63
29,897,888.00
2,232,716.96
186, 831,659.63
57,400,960.00
21, 709,697. 97
1,096,829.08

$5,610,838,787.01
23,397,257. 78
694,214,820.00
40,768,400.00
12,168,275. 64
9,854,250.00
9,907,421. 34
ta"),475,144. 31
228,840,419.09
24,168,885.00
415,385,545. 96
195,714, 143. 29
765,686,132.08
31,155, 316. 27
286,321,804. 73
48,591,154.00
3,139, 177.58
761,111,507.47
185,219,602.00
33,643,051.97
7,447,598.79
10,383,048,694. 31

RESOURCES.

Loans and discounts
Overdrafts
United States bonds to secure circulation
United States bonds to secure United States deposits
Other bonds to secure United States deposits
United States bonds on hand
Premiums on United States bonds
Bonds, securities, etc
Banking house, furniture, and fixtures
Other real estate owned
Due from national banks (not reserve agents)
Due from State banks and bankers, trust companies, etc
Due from approved reserve agents
Checks and other cash items
Exchanges for clearing house
Bills of other national banks
Fractional currency, nickels, and cents
Specie
Legal-tender notes
5 per cent redemption fund
Due from Treasurer United States other than 5 per cent fund

$1,338,814,874. 73 $1,496, 311,535. 75
243,721.02
3, 650,402. 15
80, 238, 390.00
162,457,740.00
2, 709,000.00
16, 778,000.00
1, 363,000.00
8,004,786.45
2,442,690.00
1, 730,320.00
710,966. 73
2,457,370.97
246,056,275.86
216,915,234.94
38,282, 382.51
65,540,169.88
1, 777,493.91
5,427,860. 13
139,285, 769. 57
184,031,818. 65
62,696,871.08
85,557,566. 29
287,314,856.68
6,936,392.07
8,633,205.42
209,926,080.45
63, 710,546.65
5,201,975.00
13,491,291.00
199,887. 23
706,573. 39
367, 887, 146.96
206, 392,700. 88
87, 793,977.00
40,024,665.00
3,958, 119. 50
7, 975,234.50
3, 758,583.80
2,592,185. 91

Total

2,600,283,597.42

2, 879, 704,064.64

4,903,061,032. 25

184,200,000.00
168, 719,500.00
51, 813,945.41
77, 383,690.00
16,516.00
572, 304,672.01
212,909,464.09
264,006, 703.82

50,000.00
2,920,593. 70
27,407.9-

249, 242,710.00
174, 225,974. 72
57,629,607.33
158, 286,490.00
468.00
400,841,709. 71
193,882,235. 72
234, 125,166. 24
27, 144,875.62
580,600. 72
1,336,635,414.95
17,409,663. 88
5, 271,357.04
17,478,405. 27
166,925.00
3,966,008.93
1, 771,221.48
1,045,230.03

586, 190,442. 25
329,001,321.96
132, 110,553. 35
446,070,333.00
10,722.00
66, 332,387.98
93,409,680.03
70, 770,723.24
11, 713,380.58
1,051,207.53
3,090,885,493.50
16, 859,586.40
5,412,632.95
7, 641,903.50
9, 141,575. 17
32,674,519.98
1,801,739.23
1,982,829.60

2,600,283,597.42

2,879, 704,064.64

4,903,061,032.25

LIABILITIES.

Capital stock paid in
Surplus fund
Undivided profits, less expenses and taxes
National-bank notes outstanding
State-bank notes outstanding
Due to national banks (not reserve agents)
Due to State banks and bankers
Due to trust companies and savings banks
Due to approved reserve agents
Dividends unpaid
Individual deposits
United States deposits
Deposits of United States disbursing officers
Bonds borrowed
Notes and bills rediscounted
Bills payable
Reserved for taxes
Liabilities other than those above stated

220,015.22
1,050,470,248.00
2,897,564.03
604,837.24
11, 738,440.00

Total

I
;
;
'

1,019,633,152. 25
671,946,796. 68
241,554,106.09
681,740,513.00
27,706.00
1,039,478,769. 70
500,201,379.84
568,902,593. 30
38,858,256. 20
1,851,823.47
5,477,991,156.45
37,166,814. 31
11,288,827. 23
36,858,748. 77
9,308,500. 17
36,690,528.91
6,493,554 41
2i, . .53
167
10, 383,048,694. 31

Number of National Banks Showing Savings Deposits anti Antotitit of Savings Deposits as Shown by Call or Juno 7, 1911.
Stales.

Maine
New Hampshire
Vermont
Massachusetts
Rhode Island
Connecticut

Total
I number of
banks.

Ntiiiber

showing
savings

Amount of savings
deposits.

States.

deposits.

70
56
51
188
22
79

41
12
32
29
5
6

$18,670,068 26
1,277,444.98
8,987,117.44
11,107,585.12
4,386,167.49
1,674,887.39

466

125

46,103,270.68

New York
New Jersey
Pennsylvania
Delaware
Maryland
District of Columbia

458
196
830
28
107
11

205
147
577
15
79
2

68,852,800.14
47,852,335.26
156,681,772.31
1,694,391.76
18,712,967.22
481,087.85

Eastern States

1,630

1,025

294,275,354.54

79

Washington
Oregon
California
Idaho
Utah
Nevada
Arizona
Alaska'

Hawaii
Porto Rico

Michigan
Wisconsin
Minnesota
Iowa
Missouri
Middle States

New England States

Virginia
West Virginia
North Carolina
South Carolina
Georgia
Florida
Alabama
Mississippi
Louisiana
Texas
Arkansas
Kentucky
Tennessee

....... •

Southern States
Ohio
Indiana
Illinois




128
106
74
43
114
45
81
31
31
511
46
144
100

41
36
43
35
34
13
16
63
12
26
30

24,494,342.00
6,740,056.12
3,162,628.93
7,542,058. 33
6,907,151.70
7,359,822.44
5,335,565.72
972,648.20
2,444,028. 73
6,195,304.72
882,487.96
3,134,042.08
6,109,742.46

1,454

488

81,279,879.39

380
261
438

149
58
193

34,108,619.39
5,607,743.46
33,616,690.59

so

North Dakota
South Dakota
Nebraska
Kansas
Montana
Wyoming
Colorado
New Mexico
Oklahoma
Western Slates

Pacific States

Island possessions
Total of United States

statement of Mar. 7, 1911.

Total
number of
banks
'

Number
showing
savgs
in
deposits.

Amount of savings
deposits.

100
128
272
327
129

106
140
94
18

$37,838,923.99
28,415,904.22
13,730,604.95
6,151,547.19
2,412,975.23

2,035

844

161,883,009.02

148
102
245
208
58
29
126
42
276

40
39
43
57
17
14
33
7
42

841,036.22
1,260,014.25
2,736, 195.78
2,326, 313.52
1,221,459.67
1,207,960.55
7,459,923.35
97, 161. 79
829,092.68

1,234

292

17,979,157.81

80
--,
ii
203
46
21
11
13
2

59
26
62
26
16
5
2
1

11,534,601. 44
1, 178,33.87
15,140,962.06
663,676.05
3,294,490.68
444,700.38
10, 194.48
41,366.26

453

197

32,308,825.22

4
1

3

266, 201.68

5

3

266, 201.68

7,277

2,974

634,095,698.34

86

CIRCULAR.
REGULATIONS GOVERNING THE ISSUE AND REDEMPTION OF THE CURRENCY AND
COINS OF THE UNITED STATES, AND THE REDEMPTION OF NATIONAL-BANK NOTES.

18f+2.
Department No. 121.

Treasurer's Office No. 43.

Xotamcg &E flp ifitift6 Stato,
gra4L21,1 2z,11.q7 eciedei2,ig(92.
4
0
.1

The following Regulations govern the Issue and Redemption of the Currency,
and the Gold, Silver, and Minor Coins of the United States, and the Redemption
of National-Bank Notes by the Treasurer of the United States.
I.—Issue of United States Notes.
1. New United States Notes are forwarded to Assistant Treasurers of the United States upon their
making requisition on the Treasurer for such denominations as they desire, provided they are in need of
funds.
2. New United States Notes are furnished by the Treasurer to others than Assistant Treasurers only
in return for United States Notes unfit for circulation forwarded to him in compliance with these Regulations. Exchanges of new notes for new notes of other denominations are made only after permission is
obtained from the Treasurer, and the express-charges, both ways, must be borne by the owners.
3. New United States Notes are not furnished for Certificates of Deposit issued by Assistant Treasurers or National-Bank Depositaries, or for bankers' drafts.

II.—Issue of Gold Coin.
4. Upon the receipt by the Treasurer of an original certificate of the Assistant Treasurer in New
York that a deposit of $100, or any multiple thereof, in United States Notes, has been made to the credit
of the Treasurer in general account, a like amount in gold coin will be sent from the Mint at Philadelphia,
at the consignee's expense.

III.—Issue of Standard Silver Dollars.
5. Standard Silver Dollars are forwarded by the Mint by express at the expense of the Mint in sums
of $500, or any multiple thereof. and by the Treasurer by registered mail,free of charge,in sums of $65,or
any multiple thereof, at the risk of the party to whom sent—
]. Upon the receipt by the Treasurer of an original certificate issued by any Assistant Treasurer or
National-Bank Depositary that a deposit of Currency or Gold Coin has been made to the credit of the
Treasurer in general account. Deposits with the Assistant Treasurer in New York may be made by drafts
payable to his order, and collectible through the Clearing-I louse,forwarded directly to him, with instructions to deposit the amounts On account of Standard Silver Dollars, and to forward the certificates therefor to the Treasurer.




2
II. Upon the receipt by the Treasurer, of United States Notes, Fractional Silver Coin, or NationalBank Notes.
III. Upon the receipt and collection of a draft on New York, payable to the order of the Treasurer
of the United States, and collectible through the Clearing-House.
G. Standard Silver Dollars are also sent by express at the expense of the Mint in sums of $500, or any
multiple thereof, directly from the Mhit in New Orleans, Philadelphia, or San Francisco, for deposits
of
Currency or Gold Coin with the Assistant Treasurer in the same city.
IV.—Issue of Fractional Silver Coin.
7. The Treasurer am! Assistant Treasurers of the United States will exchange Fractional Silver Coin
in sums of $20, or any multiple thereof, for lawful money of the United States.
8. The Treasurer will forward Fractional Silver Coin by express, at the expense of the Government,
in sums of $500, or any multiple thereof, or by registered mail, free or charge, in sums of $70,
or any
multiple thereof, at the risk of the party to whom sent—
I. Upon the receipt by him of an original certificate issued by any Assistant Treasurer or Nationa
l
BankDepositary that a deposit of Currency or Gold Coin has been made to the credit of the Treasurer
in
general account. Deposits with the Assistant Treasurer in New York may be.made by drafts payable
to
his order, and collectible through the Clearing-House, forwarded directly to him, with instruct
ions to
deposit the amounts on account of Fractional Silver Coin, and to forward the certificates therefor
to the
Treasurer.
II. Upon the receipt by him of United States Notes or National-Bank Notes.
Upon the receipt and collection of a draft on New York, payable to the order of the Treasur
er
of the United States, and collectible through the Clearing-House.
V.—Issue of Minor Coin.
.M

9. The Treasurer and Assistant Treasurers are authorized to pay out, for rnited States Notes,
any
oin not needed in time current business of their offices.

VI.—Redemption of United States Notes, Gold Certificates—Series of 1882,
Silver Certificates, and Fractional Currency.
10. United States Notes, each equalling or exceeding three-fifths of its original proportions
in one
piece, are redeemable at their full face value in oilier United States Notes by the Treasurer and the
several
Assistant Treasurers of the United States, and are redeemable in coin, ill sums not less than *',501 by
the
Assistant Treasurer in New York.
11. Fractional Notes, each equalling or exceeding three-fifths of its original proportions in one piece,
are redeemable at their full face value in United States Notes, in sums not less than f$3, hy the Treasurer
and the several Assistant Treasurers of the United States.
12, Gold.certificates, each oinalling or exceeding three-fifths of its original proportions in one i)iece,
are redeemable at their full face value by the Treasurer and the several Assistant Treasurers of the
United
States.
13. Silver Certificates, each (4111:tiling or exceeding three-fifths of its original proportions in
one piece,
are redeemable lit their full face value in Standard Silver Dollars by the Treasurer and the
several Assistant Treasurers of the United States.
14. United States Notes and Fractional Notes, of each of which less than three-fifths
remains, and
notes torn or cut into pieces each less than three-tilths, are redeemahle only by the Treasur
er of the United
States.




3
15. Gold Certificates, of each of'which less than three-fifths remains, and certificates torn or cut into
pieces each less than three-fifths, are redeemable only by the Treasurer of the United States.
N. Silver Certificates, of each of which less than three-fifths remains, and certificates torn or cut into
pieces each less than three-fifths, are redeemable only in Standard Silver Dollars, and only by the Treasurer of the -United States.
17. Fragments of ITnited States Notes, Gold Certificates, Silver Certificates, and Fractional Notes,
constituting clearly one-half, but less than three-fifths, when unaccompanied by evidence that the missing
portions have been destroyed, are redeemable at one-half the full face value of whole notes or certificates.
18. Fragments less than half are redeemed only when accompanied by an affidavit executed in accordance with the requirements of the following paragraph.
19. Notes and Certificates, of each of which less than three-fifths remains, accompanied by an affidavit
from the owner or from such other persons as have knowledge of the facts, that the missing poi turns have
been totally destroyed, are, if the proof furnished is satisfactory, redeemed at their full face value. Tile
affidavit must state the cause and manner of the mutilation, and must be sworn and subscribed before an
officer qualified to administer oaths, who must affix his official seal thereto, and the character of the affiants
must be certified to be good by such officer or some other having an official seal. The Treasurer will
exercise such a discretion under this regulation as may seem to him needful to protect, the United States
from fraud.
20. Fragments not redeemable are rejected and returned; counterfeit notes are branded and returned.

VII.—Redemption of National-Bank Notes.
21. National-Bank Notes are redeemable by the Treasurer of the United States in sums of $1,000, or
any multiple thereof.
22. Notes equalling or exceeding three-fifths of their original proportions, and bearing the name of
the bank and the signature of one of its officers, are redeemable at their full face value.
23. Notes of which less than three-fifths remains, or from which both signatures are lacking, are not
redeemed by the Treasurer, but should be presented for redemption to the bank of issue. Fragments less
than three-fifths are accepted filffil the bank of' issue for face value by the Treasurer only when a(Tomportions have been entirely destroyed.
panied by evidence, as required by paragraph 19, that the in
21. Fragments redeemed by the bank of issue fin. less than face value are accepted by the Treasurer
only when their valuation is equal to the face value of a note of sow denomination issued by the bank,
or some multiple thereof. The required valuation may be made up of several fragments of notes of the
same or different denominations, provided the total valuation of the fragments of each denomination be
$1, or some multiple thereof. Fragments not clearly more than t wo-fifths are acceptable only when accompanied by evidence, as required by paragraph 19, that the missing portions have been entirely destroyed.
25. It having been decided that National-Bank Notes, stolen when unsigned, and pnt in cirenlation
with forgeil signatures, are not obligatory promissory notes of the banks under section 5182 of the Revised
Statutes, they are not redeemed by the Treasurer.
26. Notes of National Banks that have failed are redeemed in the same manner and on the same terms
as United States Notes.

VIII.—Redemption of Fractional Silver Coin.
27. Fractional Silver Coin is exchangeable for lawful money of the United States in sums of $20, or
anv multiple thereof, by the Treasurer or any Assist:int Treasurer of the United States.
28. The coin should be put up by denominations, and each package marked with the amount it contains,







4
29. No mutilated coin will be redeemed. Reduction by natural abrasion is not considered mutilation.
30. When the coin is forwarded by express it should be addressed to the Treasurer of the United
States.
IX.—Redemption of Minor Coin.
31. Coins of copper, bronze, and copper-nickel may be presented in sums of $20, or any multiple
thereof, assorted by (li'uuouiuiuiat ions a nd issues, to the Treasurer or any Assistant Treasurer,for redemption
in lawful money.
32. A letter of advice 5110111(1 accompany the package, stating the amount and kind of coin, and
the
name of the owner.
33. Minon Coins so mutilated that they cannot be identified, or materially reduced in value
by chipping or otherwise, will not be redeemed.
X.—Mode of Transmission to the Treasurer.
34. When a person making a remittance, either by mail or by express, fails to give his full name
and
post-office address, including the State, the remittance is retained until the name and addres
s are furnished, together with a satisfactory description of the package claimed.
35. United States Notes, Fractional Currency, and National-Bonk Notes should be put up
in separate
packages and be accompanied by separate letters of advice. When the amount sent
at one time exceeds
eight thousand notes, it should be put in several packages of not exceeding eight thousa
nd notes each,
marked A, B, C,
respectively.
36. United States Notes and Fractional Currency 511011(1 be assorted by denomi
nations and put up
in paper straps at least one inch in width. Strings and rubber bands should not be used.
One hundred
notes, and no more, sh(mld be placed in each strap, 1111(1 the strap should be
plainly marked with the
amount and denomination of the contents.
37. A letter of advice, or inventory,describing the contents by parcels and
amounts, and total footing,
written on not less than half a sheet of commercial-note paper, should he
inclosed with each package. It
should give the address of the party sending and the disposition to be made
of the proceeds.
38. The package thus prepared, if sent by express, should be sealed up
in stout paper and addressed
to the Treasurer of the United States. It should be plainly marked on the
outside with the owner's name
and full address, the amount inclosed and the nature of the conten
ts—whether United States Notes,
Fractional Currency, or National-Bank Notes, the disposition to be
made of the proceeds, and that it is
forwarded under Government contract, if such be the ease.
39. All remittances of money by mail for redemption should he
addressed to the "Treasurer of the
United States, Washington, I). C."
40. It is the duty of Postmasters to register free of charge all letters
.
cmitaining Currency of the
United States addressed to the Treasurer for redemption, on
which the postagtliasteen fully prepared,
and all letters containing new Currency returned by him therefo
r. It is recommended that all such letters
be registered as a protection against loss.
41. Itemittanees to the Treasurer by mail, and 1'' urns thereibr by
mail, are invariably at the risk of
the owners. All communications to the Treasurer, in regard to packages lost
in the mail, are referred for
investigation to the Chief Post-Office Inspector, Post-Office Depart
ment, Washington, D. C., to W110111 :111V
subsequent inquiry on the subject should be addressed.

XI.—How Returns are Made.
FOR REMI'1"1‘ ANCES BY EXPRESS.
42. For United States Notes or Nation tl-B talk Notes, sent in any amounts, returns will be made in
new United States Notes or Fractional Silver Coin, of such denominations as may be asked for.
43. For United States Notes,Fractional Silver Coin, or Nat ional-Bank Notes, sent in III tiltipleS of $500,
Standard Silver Dollars will be sent from the Mint.
44. For National-Bank Notes sent from cities in which there is an Assistant Treasurer, returns will
be made by the Treasurer's transfer.cheek on the Assistant Treasurer in that city.
45. For National-Bank Notes sent from other places, returns will be made by the Treasurer's transfercheck on such Assistant Treasurer as may suit the convenience of the Treasury, payable to the order of
the sender or of his correspondent.
46. For Fractional Silver Coin sent in multiples of $20, returns will be made by the Treasurer's
transfer-check on any Assistant Treasurer U. S.
47. For Minor Coin sent to an Assistant Treasurer, returns will be made only by the Treasurer's
transfer-check. If sent to the Treasurer, returns will be made either by transfer-check or in Fractional
Silver Coin by express.
48. For United States Notes, upon which the express-charges have been prepaid at private rates,
returns will be made,if so requested, by the Treasurer's transfer-check drawn on any Assistant Treasurer,
payable to the order of the sender or of his correspondent. In all other cases, returns are made directly
to the sender.
49. Shipments as above indicated will be made only to points in the United States reached through
established express lines by continuous railway or steamboat communication.
FOR REMITTANCES BY MAIL.
50. For United States Notes sent in sums less than $5, new United States Notes or Fractional Silver
Coin will be returned at the owner's risk, free of charge, by registered mail.
51. For United States Notes sent in sums of $5 or more, returns will be made by the Treasurer's
transfer-check on any Assistant Treasurer U. S., or, if requested, in new United States Notes or Fractional
Silver Coin, at the owner's risk, free of charge, by registered mail.
XII.—Express-Charges.
EXPRESS-CHARGES PAID BY THE GOVERNMENT.
52. On remittances of public money between the offices of the Treasurer and of the Assistant Treas-

urers of the ITnited States.
53.

54. On Sandard Silver Dollars sent from the Mint in sums of $500 or its multiples.
55, Oa Fractional Silver Coin sent by Ow Treasurer in sums of $500 or its multiples.
56. On National-Bank Notes sent to the Treasurer for redemption in sums of *1,000 or its limit ipies.
EXPRESS-CHARGES NOT PAID BY THE GOVERNMENT.
57. On United States Notes sent for redemption in packages consisting in W11010 )r in part of notes
tit for eirefil:it ion, or ofother Notes than ITnited States Notes,or containing other amounts than multiples
of $500, and on United States Notes sent in any amounts for credit of the five per cent. redemption fund,
the charges, if not prepaid, are deducted from the proceeds at contract rates.







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9

XIII.—General Information.
this Circuive drafts of banks and bankers under
ant Treasurers are not authorized to rece
72. Assist
Clearingreceive drafts collecIi! le I h rough the
Assistant Treasurer in New York may
lar,except that the
Dollars and Fractional Silver Coin.
Itouse, in payment for Standard Silver
d with
"that all United States officers charge
e 30, 1876,(19 Statutes, 64,) requires
e in
73. The act of Jun
National Banks shall stamp or writ
of public moneys, and all officers of
form
I he receipt or disbursement
n all fraudulent notes issued in the
unterfeit," altered,' or worthless,' upo
h
plain letters the word 'co
at their places of business; and if suc
as, money, which shall be presented
y
of, and intended to circulate
es, or of the National Banks, the
any genuine note of the United Stat
officer shall wrongfully stamp
notes at the face value thereof."
shall, upon presentation, redeem such
not be paid entirely
one payment to the Government can
n the total amount of dues in any
74. Whe
part of a dollar,
greater, because involving a fractional
ey of denominations of one dollar or
in lawful mon
when the
ominations of less than one dollar, but
part may be paid in silver coins ()I den
such tractional
er coins
h total amount may be paid in the silv
h dues does not exceed ten dollars, suc
total amount of suc
of denominations of less than one dollar.
icate, the
cks, and upon application tbr a dupl
loss or destruction of one of his che
75. In case of the
indemthe applicant with a form of bond of
t of the original check, and furnishes
Treasurer stops paymen
cuted, a duplicate is issued.
nity, upon return of which, properly exe
oh svrvall officers of the I >ei)autinent, and
Foregoing regulations is enjoined on
Compliance wit Ii the
all making remittances to this office.
ance thereof will be expected of
AN,

JAS. GILFILL

Treasurer U. S.
A ppro ved:




CHAS. J. FOLGER,
Secretary of the Treasury

NOTICE.
ISSUE OF STANDARD SKIER DOIIIRS, SUER CER1IFIC1TES, AND FRACTIONAL SKIER COIN.
STANDARD SILVER DOLLARS are forwarded by the Mint by express, at the expense of the
Mint,in sums of $500, or any multiple thereof, and by the Treasurer by registered mail, free of charge, in
sums of $65, or any multiple thereof, at the risk of the party to whom sent—
I. Upon the receipt by the Treasurer of an original certificate issued by any Assistant Treasurer or
National-Bank Depositary that a deposit of Currency or Gold Coin has been made to the credit of the
Treasurer in general account. Deposits with the Assistant Treasurer in New York may be made by drafts
payable to his order, and col!ectible through the Clearing-House, forwarded directly to him, with instructions to deposit the amounts on account of Standard Silver Dollars, and to forward the certificates therefor to the Treasurer.
II. Upon the receipt by the Treasurer of United States Notes, Fractional Currency, Fractional Silver
Coin, or National-Bank Notes.
III. Upon the receipt and collection of a draft on New York, payable to the order of the Treasurer
of the United States, and collectible through the Clearing-House.
STANDARD SILVER DOLLARS are also sent by express, at the expense of the Mint,in sums
of $500, or any multiple thereof, directly from the Mint in NEW ORLEANS,PHILADELPHIA, or
SAN FRANCISCO,for deposits of Currency or Gold Coin with the Assistant Treasurer in the same city.

SILVER CERTIFICATES.—Upon the receipt by the Treasurer of an original certificate issued
by the Assistant Treasurer United States at New York that there has been deposited with him Gold Coin
in the sum of $500 or any multiple thereof, payment of a like amount in Silver Certificates will be directed
to be made by any Assistant Treasurer of the United States that the depositor may designate; or the
Certificates NViii he forwarded by express by such Assistant Treasurer to any point designated by the depositor, at the expense of the Consignee.
Silver Certificates will be furnished in exchange for Gold Coin by any Assistant Treasurer of the
United States.

FRACTIONAL SILVER COIN is forwarded by the Treasurer by express, at the expense of
the Government, in sums of $500, or any multiple thereof, or by registered mail, free of charge, in sums
of $70, or any multiple thereof, at the risk of the party to whom sent—
I. Upon the receipt by him of an original certificate issued by any Assistant Treasurer or NationalBank Depositary that a deposit of Currency or Gold Coin has been made to the credit of the Treasurer in
general account. Deposits with the Assistant Treasurer in New York may be made by drafts payable to
his order, and collectible through the Clearing-House. tbrwarded directly to him, with instructions to
deposit the amounts Oil account of Fractional Silver ('out, and to forward the certificates therefor to the
Treasurer.
Upon the receipt by him of United States Notes or National-Bank Notes.
III. Upon the receipt and collection of a draft on New York, payable to the order of the Treasurer
of the United States, and collectible through the Clearing-House.

A. U. WYMAN,
TREASURY OF THE UNITED STATES,
Washington, D. C., August 15, 1883.




[Ed. 8-15-'53-71500.]

Trectsarer U. S.

CIRCULAR.
EX PRESS-CHARGES ON FRACTIONA L SILVER COIN FORWARDE D BY TII E
TREASURY TO BE PAID BY TI I E GOVERNMENT.

.1884.
Department No.65.

Treasurer's Office, No. 46.

i
utuarq trt fly I4.•n1ft5 Sfaff5,
/
frPaoL;rti

,

•

,Yaa
"

iRSV.

An appropriation for the transportation of fractional silver coin having been made by the Act of
May 1, 1884, the Treasurer of the United States will forward such coin by express, at the expense of the
Government, in sums of $500, or any multiple thereof, or by registered mail, free of charge, in suni of
$70, or any multiple thereof, at the risk of the party to whom sent1.—Upon the receipt by him of an original certificate issued by any Assistant Treasurer or NationalBank Depositary that a deposit of currency or gold coin has been made to the credit of the Treasurer in
general account. Deposits with the Assistant Treasurer in New York may be made by drafts payable to
his 4)14 hi, and collectible through the Clearing-House. ti)rwarded directly to him with instructions to
hi osit the a nnlunt s on account of fractional silver coin, and to forward the certificates I herefor to the
Treasurer.
11.—U1)on the receipt by him of United States notes or National-Bank notes.
III.—Upon the receipt and collection of a draft on New York, payable to the it
of the United States, and collectible t',rough the Clearing-House.




of the Treasurer

A. I'. WYMAN,
Treasurer U. A.

Approved:
CHAS. .1. FOLC.14,1t,
Secretary of thc l'reasury.

CIRCULAR RELATIVE TO THE MANNER IN WHICH STANDARD—SILVER
DOLLARS MAY BE OBTAINED.

1879.
Department No. 4.

Secretary's Office.

Crrazm

ptprfnunt

itgu t 7 n
a; 4 ,

Ianceaiy 1

1ffl77.

The Treasurer of the United States has been directed, upon the receipt by him from any person of a
certificate, issued by any Assistant Treasurer, Designated Depositary, or National Bank designated as a
public depositary of the United States, stating that a deposit has been made to his credit in general
account of the sum of one thousand (1,000) dollars,(that being the smallest amount shipped by express
at Government rates,) or any multiple thereof, to cause a shipment to be made from some Mint of the
United States to the person in whose name the certificate is issued, of a like amount of Standard-Silver
Dollars, the expense of transportation to he paid by the Mint.
Until further notice, upon receipt by the Treasurer of the United States of United States notes or
National-Bank notes sent for redemption, in multiples of $1,000, Standard-Silver Dollars will be returned
under the provisions of this circular.
It is expected that the coin furnished as above will be put into circulation by being furnished to
Public Disbursing Officers, anti to all persons or corporations who desire it for use or distribution as
current money.
The Assistant Treasurers of the United States are also authorized to use the Standard-Silver Dollars
in their vaults for the general purpose approved in this Circular.
United States Disbursing Agents and Paymasters who obtain funds for disbursement from Assistant
Treasurers or Depositaries are requested to procure Standard-Silver Dollars when practicable,for disbursement.
Shipments as above indicated, however, will be made only to points in th€ United States reached
through established express lines by continuous railway or steamboat communication.




Secretary.

CIRs
OBTAINING SILVER COIN FROA1 THE UNITED STATES TREASURY.

1881.
Dews rt'Jamul No.23.

retary's Office.

(Truoury
i
frettiL129101t_,

path/flint,
,y&egic4

In accordance with the provision in the Act making appropriations for the Sundry Civil Expenses of
the Government, approved :March 3, 1881, to wit: "That the Secretary of the Treasury be, and he is
hereby, authorized and directed to transport,free of charge, silver coin when requested to do so: Provided,
That an equal amount in coin or currency shall have been deposited in the Treasury by the applicant or
applicants;" until further notice, fractional silver coin and standard silver dollars will be sent by express,
free of charge, if so requested, under the regulations of this Department, in sums of $500, or any multiple
thereof; or by registered mail, free of charge, if so requested, in sums of 160, or any multiple thereof not
exceeding $300, at the risk of the person to whom sent.
Any correspondence pertaining to this matter should be addressed to the Treasurer of the United
States, Washington, D. C.




WILLIAM WINDOM,
Secretary.

1\TOrl'ICM.
ISSUE OF STANDARD SILVER DOLLARS, SILVER CERTIFICATES, AND FRACTIONAL SILVER COIL
STANDARD SILVER DOLLARS are forwarded by the Mint by express, at the expense of the
Mint, in sums of $500, or any multiple thereof, and by the Treasurer by registered mail, free of charge, in
sums of $65, or any multiple thereof, at the risk of the party to whom sent—
I. Upon the receipt by the Treasurer of an original certificate issued by any Assistant Treasurer or
National-Bank Depositary that a deposit of Currency or Gold Coin has been made to the credit of the
Treasurer in general account. Deposits with the Assistant Treasurer in New York may be made by drafts
payable to his order, and collectible through the Clearing-House, forwarded directly to him, with instructions to deposit the amounts on account of Standard Silver Dollars, and to forward the certificates therefor to the Treasurer.
II. Upon the receipt by the Treasurer of United States Notes, Fractional Currency, Fractional Silver
Coin, or National-Bank Notes.
III. Upon the receipt and collection of a draft on New York, payable to the order of the Treasurer
of the United States, and collectible through the Clearing-House.

STANDARD SILVER DOLLARS are also sent by express, at the expense of the Mint, in sums
of $500, or any multiple thereof, directly from the Mint in NEW ORLEANS, PHILADELPHIA, or
SAN FRANCISCO,for deposits of Currency or Gold Coin with the Assistant Treasurer in the same city.

SILVER CERTIFICATES.—Upon the receipt by the Treasurer of an original certificate issued
by the Assistant Treasurer United States in New York that there has been deposited with him Gold Coin
in the sum of $500 or any multiple thereof, payment of a like amount in Silver Certificates will be directed
to be made by any Assistant Treasurer of the United States that the depositor may designate; or the
Certificates will be forwarded by express by such Assistant Treasurer to any point designated by the depositor, at the expense of the consignee.
Silver Certificates will be furnished in exchange for Gold Coin by any Assistant Treasurer of the
United States.

FRACTIONAL SILVER COIN is forwarded by the Treasurer by express, at the expense of
the Consignee at Government-contract rates, in sums of $500, or any multiple thereof, (express-charges
being deducted by the Treasurer U. S.7)or by registered mail, free of charge, in sums of $70, or any
multiple thereof, at the risk of the party to whom sent—
I. Upon the receipt by him of an original certificate issued by any Assistant Treasurer or NationalBank Depositary that a deposit of Currency or Gold Coin has been made to the credit of the Treasurer in
general account. Deposits with the Assistant Treasurer in New York may he made by drafts payable to
his order, and collectible through the Clearing-House, forwarded directly to him, with instructions to
deposit the amounts on account of Fractional Silver Coin, and to fbrward the certificates therefor to the
Treasurer.
II. Upon the receipt by him of United States Notes or National-Bank Notes.
III. Upon the receipt and collection of a draft on New York, payable to the order of the Treasurer
of the United States, and collectible through the Clearing-House.

TREASURY OF THE UNITED STATES,




Washington, D. C., December 11, 1883.

fEd. 12-11-'83-1,000.]

A. U. WYMAN,
Treasurer U. S.

1\TOTIOM.
-441.1101..

Issue of Standard Silver Dollars and Fractional Silver Coin.
STANDARD SILVER DOLLARS are forwarded by the Mint by express at the expense of the
Mint in sums of $500 or any multiple thereof, and by the Treasurer by registered mail, free of charge, in
sums of $65, or any multiple thereof, at the risk of the party to whom sent—
I. Upon the receipt by the Treasurer of an original certificate issued by any Assistant Treasurer or
National-Bank Depositary that a deposit of Currency or Gold Coin has been made to the credit of the
Treasurer in general account. Deposits with the Assistant Treasurer in New York may be made by drafts
payable to his order, and collectible through the Clearing-House,forwarded directly to him, with instructions to deposit the amounts on account of Standard Silver Dollars, and to forward the certificates therefor to the Treasurer.
II. Upon the receipt by the Treasurer of United States Notes, Fractional Currency, Fractional Silver
Coin, or National-Bank Notes.
III. Upon the receipt and collection of a draft on New York, payable to the order of the Treasurer
of the United States, and collectible through the Clearing-House.

STANDARD SILVER DOLLARS are also sent by express at the expense of the Nita in sums
of $500, or any multiple thereof, directly from the Mint in NEW ORLEANS, PHILADELPHIA, or
SAN FRANCISCO,for deposits of Currency or Gold Coin with the Assistant Treasurer in the same city.

FRACTIONAL SILVER COIN is forwarded by the Treasurer by express, at the expense of
the Government, in sums of $500, or any multiple thereof, or by registered mail, free of charge, in sums
of $70, or any multiple thereof, at the risk of the party to whom sent—
I. Upon the receipt by him of an original certificate issued by any Assistant Treasurer or NationalBank Depositary that a deposit of Currency or Gold Coin has been made to the credit of the Treasurer in
general account. Deposits with the Assistant Treasurer in New York may be made by drafts payable to
his order, and collectible through the Clearing-House, forwarded directly to him, with instructions to
deposit the amounts on account of Fractional Silver Coin, and to forward the certificates therefor to the
Treasurer.
II. Upon the receipt by him of United States Notes or National-Bank Notes.
III. Upon the receipt and collection of a draft on New York, payable to the order of the Treasurer
of the United States, and collectible through the Clearing-House.

JAS. CULFILLAN,
Treasurer U. S.
TREASURY OF THE UNITED STATES,




Washington, B. C., July 20, 1882.

i\TorTicm..
STANDARD SILVER DOLLARS. Upon receipt at this Office of a
certificate issued by any Assistant Treasurer or National I aiik Depositary that a
deposit of Currency has been made, or upon the receipt at this Office of United
States Notes, Fractional Currency, Fractional Silver Coin, or National Bank Notes,
or upon the receipt and collection of a check on New York, payable to the order
of the Treasurer of the United States, in sums of $500, or any multiple thereof,
Standard Silver Dollars will be sent from the Mint of the United States, at the
expense of the Mint, to any point accessible through established express lines
reached by continuous railway communication.

STANDARD SILVER DOLLARS will be sent, as above, directly
film] the Mint in NEW ORLEANS, PHILADELPHIA, or SAN FRANCISCO,
upon the certificate of the Sub-Treasurer in the same city, thereby avoiding delay
in having the transaction confirmed by this Office before remittance.

STANDARD SILVER DOLLARS will also be sent from this Office,
free of postage, by Registered Mail, in sums of $65, at the risk of the party to
whom sent, and at his expense for the registration fee of 10 cents, to be deducted
at this Office from the remittance.

FRACTIONAL SILVER COIN will be sent from this Office, for deposits as stated in the first paragraph above, and the transportation charges will
be deducted at this Office from the remittance at Government contract rates, whieli
are six mills per mile per $1,000, with a minimum rate of $1 per $1,000 to each
Express Company, and half rates for .500 or less.

FRACTIONAL SILVER COIN will also be sent from this Office, free
of postage, by Registered Mail, in sums of $70, at the risk of the party to whom
sent, and at his expense for the registration fee of 10 cents, to be deducted at this
Office from the remittance.

JAS. GILFILL A N,
TREASITRY OF TI1E UNITED STATEs,
Washington, b. C., August 26, 1880.



Treasurer U. S.

An Act
For the Purpose of Relieving
the Money Stringency in any
and all Parts of the United
States, to Enable Banks to Secure Currency for the Purpose
of Moving Crops. and for the
Purpose of Relieving or Preventing a Congestion of Business From the Lack of Circulation Throughout the United
States. :-:




Article 1. The United E'tates Treasurer is hereby authorized, empowered
and directed to issue and keep on
hands sufficient amount of Treasury
notes to supply the National banks
throughout the United States with
currency from time to time as necessity may require.
He is further
authorized, empowered and directed
to supply to all the Sub-Treasurers
of the United States a sufficient
amount of said Treasury notes to supply the territory tributary to said
points where said Sub-Treasuries may
be located. He is further authorized.
empowered and directed, as in his
judgment it would be for the best interest of the various parts of the
United States to establish Sub-Treasury Agents in each and every state
for the purpose of carrying out the
purpose of this Act.
Article II. The Treasurer of the
United States, any Sub-Treasurer or
Agent appointed by him shall be empowered, authorized and directed to
loan to any National bank doing business in the United States, and tributary to the nearest point where said
Treasury, Sub-Treasury or Agent may
he located, a sum of money not to exceed seventy-five per cent (75) of the
capital stock of any such bank, and
shall be authorized and empowered
to accept as security for said loan,
notes, bills receivable or other securities, of any such bank, in double
the amount of the loan so made to
The Treasury Departsuch bank.
ment, Sub-Treasury or Agent shall be
subrogated to all the rights and powers over the securities as may be
vested in the bank furnishing them.
Article HI. All such loans made to
'hanks by the Treasurer or through
the Sub-Treasuries or Agents, shall
not run for a period longer than six
months from the date of negotiations,




and shall bear the following rate of
interest per annum, to-wit:
Four per cent (4) for the first
month, Five per cent (5) for the
second month, Six per cent (6) for
the third month, Seven per cent (7)
for the fourth month, Eight per cent
(8) for the fifth month, and Nine per
cent (9) for the sixth month.
Article IV. When securities are
put up as collateral in accordance
with the foregoing section, and any
of them mature before the loan made
by the bank, it shall have the right
to substitute other security maturing
at a latter date in lieu thereof.
Article V. If any bank should fail
or become insolvent during the period it has a loan from the Treasury
Department as herein provided for,
the said Treasury Department shall
have a first lien on all the assets of
said bank until said loan is fully paid.
Article VI. The Treasurer of the
United States is 'hereby authorized,
C mpowered and directed, whenever
any loan or any part of the same is
paid off, to withdraw and cancel an
equal amount of Treasury notes from
circulation, and he shall have the
further power to require all National
hanks to keep all Treasury notes
listed in their assets from day to dry,
and he is hereby empowered to call
in the same in any such amounts as
he may deem necessary by substitoting a like amount of other money
for circulating medium.
Article VII. All rules and regulations necessary to the putting into
force the above measure shall be vested in the Treasurer of the United
States, and he shall have full power
to make such rules and regulations as
is necessary to carry forward the business contemplated under this law, and
shall have the power to appoint all

Agents deemed necessary for the successful operations of this law.
He
shall also have the power and authority to rent buildings, equip and furnish them in the proper manner to
carry forward the said business.
Article VIII. It is further ordered
that all necessary money which may
'be required to put into operation this
law shall be payable from the appropriation made for the general support and maintenance of the United
States Treasury Department.
Article IX. The treasurer of the
United States shall annually make a
report showing the profits or losses
accruing from the operations of this
bill, and submit same to the Congress
of the United States.

The above Bill is submitted to the
person addressed for your consideration and approval or criticism, beHet ing it is a simple, sensible method
of making a flexible currency and prewilling a spasm in financial affairs.
Very truly yours,
J. W. ORB,
Prest. Of First Nat'l. Bank,
Tulsa, Okla.







The Urgent Need of an Expansion Joint in our Monetary
System or the Consequences of Doing Business
With an Inelastic Currency
A Paper Read to the Passaic Board of Trade by Robert D. Kent, President of The Merchants Bank of
Passaic, Passaic New Jersey, June, 30th, 1910.
My excuse for this paper is a general banking experience of thirty-five years and during the last ten years
of that period a somewhat thoughtful consideration of the special questions involved.
The expansion joint is a well known device in mechanics. If you should walk over the Brooklyn Bridge
you will sec a place where steel plates slide over each other in the roadway, and if you should ask the purpose
they serve you will be informed that it is an "expansion joint," to allow for the effect of heat and cold in expanding- and contracting the metal of which the bridge is built. Your watch has in it a device known as a
"balance wheel" which is an expansion joint to enable it to (I() its work correctly regardless of the expansion
by heat or the contraction by cold. Please note that while the name is "expansion joint," the thing really is an
expansion and contraction joint.
Bear with me for a little and T vill endeavor to make use of this idea of the expansion joint in mechanics
to illustrate some of the ill effects we experience because we have no expansion joint in connection with our
circulation of currency or because in the terms of the old, but I fear not generally understood expression, "our
currency lacks elasticity."
Last year the value of our principal crops amounted to 4,652 million dollars. Practically all of this is
harvested and marketed in the fall: hence we require great amounts of money to "move the crops." We hear
that term very frequently but T do not think many of us realize what is implied by it. Several years ago I was
in Nebraska, and with some other men was starting to drive out into the country from a town on the railioad.
One of our party who lived in the town called our attention to a man driving into the place with several hogs
in his wagon. Ile said, "that man will sell his hogs and get twenty-live or thirty dollars for them, and will
spend five or six dollars for groceries and supplies, and take the balance of fly., money back into the country
to his home ten or fifteen miles from the railroad. The next week he will repe; t the operation. The money he
takes back with him each week will go to make lip a fund which will last him for his family expenses until the
following spring." I then woke up to the fact that several million farmers wee doing the same thing all over
our broad land, and I had a larger conception of what it meant to furnish inmey to "move the crops"—the
cereal and other products of the West and the Cotton of the South.
If the fanner had a 1);(n1; account and deposited his receipts to his credit with his bank, such money could
be used )v.et and over again, and when the active shipping to the East was over the surplus money in the banks
of the ‘vestern and southern towns would in a comparatively short time find its way back to the money centers
of the country, and the banks of these centers would send their surplus supply to New York.
We can have no accurate statement of the amount of money needed each fall to move the crops, nor just
how long it will be before it gets back again to) the money centers; but a fair estimate would be that 200 or
::00 million dollars is required each fall for this purpose, and that in January February and March nearly all
of the crop-moving money will be restored to ordinary circulation.
Now it is in order to inquire where the large amount of money needed each year is obtained, and at what
cost.
To a very limited extent do the banks at the money centers carry much over their legal reserve from
which to contribute. They do, however, have considerable in demand loans which are called in, to the disturbance of the security market. Next they refuse much needed accommodation to merchants and manufacturers to whom they would willingly lend at other seasons of the year. This helps some more. The banks
also collect—all maturing time paper which may have been purchased from commercial paper dealers from
April to) July. In other words, financial strain is caused on every hand.
If by such efforts in our own country, money enough is not obtained, we also disturb the money centers
of Europe, as I shall show later.
In a short paper such as this must be I can give only outlines of processes. Intelligent bankers and business men can till in the details. So far I have dealt with the trouble caused by lack of the ability of our currency to expand when special funds are needed. Now for a few words on the results of the inability to contract when money is unduly abundant.
In the Spring and early Summer of 1909 'hi en the crop-moving money had all been returned to the
money centers, there was a considerable time when call-money was plentiful at from 1 / to 2 per cent. In the
12
early spring I was in the office of a Stock Exchange House in New York, and while discussing the increased
supply of money with a member of the firm, he remarked, "In two or three weeks the banks will In crazy with
money"—his idea being that almost any rate would get it, and that the banks would not be severely critical as
to the character of the co!;ateral required. For a period of two or three mcnths a hitt1 later than this, the




dealers in Commercial paper were going about among the business houses of New York, and.
where, offering amounts of from $25,000 to $100,000 or more on the single name paper of the probably elsecent. It needs but little imagination to see how this condition would lead to undue inflation firms at 3V2 per
of.
securities, to the flotation of unwise ventures, and to the undue use of credit by the commerci the prices of
al and manufacturing community.
James B. Forgan, President of the First National Bank of Chicago, in an address says, "In the
long run
commerce suffers more from periods of over abundance of money than from those
of scarcity. The origin of
each recurring period of tight money can be traced to preceding periods of easy money. Wheneve
r money becomes so overabundant that bankers, in order to keep it earning something, have to force
it out at abnormally
low rates of interest, the foundations are laid for a period of stringency in the not
speculation is encouraged, prices are inflated, and all sorts of securities are floated."far distant future, for then
During one part of the year we are distressed to supply 200 or 300 million dollars
ing the other part we do not know in what legitimate way to use a considerable portion extra currency. Durof it when its special
service is over. In other words we do a volume of business vastly changing in size
with practically a fixed
quantity of currency. Does not this show the need of an expansion joint?
In support of my statement that in our annual needs we disturb the money centers
of Europe, I will quote
in full a special cable dispatch from London to the New York Times published March
19th, of this year. It will
be found full of instruction for us, and is under the heading—"To Steady the Money
Market."
"London, March 18.—In connection with the Bank of England's advance in the official
discount rate this
week, The Statist will, in to-morrow's issue, draw attention to the action of one of
the most powerful English
joint stock banks, which if pursued systematically and on a requisite scale, may have
the future course of the money market. Last Autumn, when the American demand considerable influence on
forced
to come to the assistance of the London money market, the joint stock bank in question the Bank of France
which it previously accumulated, thus diminishing the demand on the Bank of England. sold freely of gold
"As it did previously when the metal was cheap, the bank this year is again buying
lines various reasons which may be actuating the Directors, but inclines to the belief gold. The Statist outto steady the rates, instancing the claim of the Bank of France that by not greatly that their main object is
varying the rates it conferred incalculable benefits upon French trade in all its forms."
"If the joint stock bank to which we refer." adds The Stoi.o. "can succeed in
preventing the extreme
oscillations in the rate of discount to which we have long been accustomed, it
unquestionably will perform a
great public service."
"In conclusion, The Statist urges co-operation among the London banks to
has a peculiar point at the moment, when there is a wide-spread belief that the secure this object. The article
Bank of
able to make its official rate effective, for up to the present the discount rate in the open England will not be
market has not responded to the increase in the official rate.The other nations of the world do not have such agricultural crop to handle each
year as we do. They
have not the same need for an elastic currency. Their lesser need, however, is provided
this statement I will quote from a recent issue of the Wall Street Journal in which the for. In support of
Postal Savings Bank
Question was being considered. It says, "Every country in Europe having a Postal
Bank has a central banking system which prevents panics and specie suspension, and affords inexhaustible resources
through its power
of note issue and its relation to foreign markets, for meeting unusual demands."
It is not entirely correct to, say that we have no expansion joint in our
method of relief is Clearing House Certificates, but we never use that method currency system. One such
until the case is so desperate
that a panic is upon us and we face disaster. These certificates have been resorted
to
in forty years, and have averted financial catastrophes. lint they fall short of serving but three or four times
us to the best advantage
even when issued, because they do not go from city to city, and because they
are not issued in small denominations for wages and small transactions, except as they were so used in a few cities
in 1907 in .direct violation of law.
Clearing House Certificates as generally used, w hile not in violation of law, are
not authorized by it.
The present Emergency Currency law is an earnest attempt . furnish us with elasticity
to
'adapted to our comparatively moderate extra needs each fall. It is more for the purpose of , but it is not
helping us to recover after we have been seriously hurt. A few changes in the law would, I feel sure, make
it extremely useful.
During the past two years we have, as a people, made considerable advance in our
knowledge of the
principles governing the circulation of currency. Many bankers and economists are
studying the question, and
undoubtedly some adequate form of relief will ultimately be devised.
In order that the Proper solution of the situation may be arrived at it is necessary that
ness men become posted on it; that they form clear ideas of the troubles we endure from bankers and busiour present faulty
system, and of what is needed i n the way of relief. An.intelligent public opinion is
wise leaders may be followed, and the plans and remedies of unwise leaders avoided. necessary in order that
The Monetary Commission has devoted much labor to the question, and while its
views have not been
made known, it has collected much valuable information.
The opinions of banking and currency experts on the question are instructive. T will
therefore call your
attention to a few who have written on the subject and have, in my judgment, shown a
comprehensive grasp
of it.
Mr. Paul M. Warburg, of Kuhn, Loeb & Co., has written ably on the question, and
plan of central bank. William A. Nash, the president of the Corn Exchange Bank of New presents in detail a
York, wrote a valuable paper on the possibilities of the enlarged use of clearing house certificates which
was published in the
New York Times of Feb. 14, 1910.
Mr. Victor Morowetz has written a book on "the 11A ilkini4" a Ild Currency Problem of
the United States."
It contains valuable information, and proposes a plan (.1 rd iii.
Mr. A. J. Frame, of Waukesha, Wisconsin, in several spceche s
1 );1 1)ers has ably pre-ented some of
the important points involved.

In the Banking Law Journal beginning with Novembe
r, 1909, Mr. Maurice L. Mull!email gives a plan of
a central bank which shall be free from political control
on the one hand, and from speculative interests on the
other.
These writers are all thinking in the right direction, and
while differing in details, all clearly sec the
necessity of and aim at an expansion joint.
Andrew Carnegie says: "Americans have many
in advance of other nations, but we have at least oneadvantages upon which we may plume ourselves as being
humiliation to lessen self-glorification. Our banking
system is the worst in the civilized world."
Mr. James G. Cannon, vice-president of the Fourth National
the Monetary Commission, quotes, and apparently with approval Bank, of New York, in a paper published by
omist who says: "The truth is that responsibility for the panic of , the remark of a prominent banker and econNo other adequate cause can be found. We do business by the 1907 lies at the door of our currency system.
modern
failed to supplement this machinery with the means for readily convert system of bank credits, but we have
ing bank credit into cash."
In an editorial under date of 1\l ay 10, 1910, the New York Times
edly called attention to the fact that the volume of our bank notes says: "Only a little time ago we repeatpersisted in increasing unnaturally. The
depressed conditions of trade and the money market called for
reduction of the volume of credits and currency, yet our bond-secured currency persisted in coming out.
The banks held two per cent bonds on a basis
which necessitated making them earn something more than their
interest yield, and the notes based on them
were forced into circulation under the most unwholesome conditions."
In an editorial review by the same paper of Mr. Paul M. Warburg's
plan for a Central Reserve Bank, on
March 25, the following occurs. "It is now understood that what
used to be referred to proudly as the best
currency system in the world is not worthy the name of system, and bears
ized country. Americans know no better way of moving the crops than no likeness to banking in any civilwith
and credit, maintained at great expense in idle times, only to be inaccessible a permanent supply of currency
and inadequate when time of need
arrives. It is plain how turning idle resources into the security market
inflates them abnormally. It is equally clear how the withdrawal of those resources for use is as disturbing and
conspicuous as possible. Not only
money market experts watch our security markets, everybody watches
them. We are made a nation of security speculators against our wills. We are constanly making and unmakin
selves, or our customers if we arc bankers, with cash when we or they wantg security bargains to supply ourit, and to absorb idle funds. Rarely do foreign banks move more than a fraction of one per cent. Our
money rate doubles or triples itself, and
sometimes it reaches cent per cent. People used to a staple market cannot
reconcile such antics with solvency
or sanity."
Mr. Warburg in a Pamphlet entitled The Discount System of Europe says,
"Our own system being absolutely inelastic, we have become accustomed to use as a substitute the
power of our banking community to
borrow in Europe. We thus use Europe as an auxiliary financial machine,
become so great as to threaten the safety of the European machinery when but we forget that our weight has
we are
utmost capacity in order to provide for our needs. Europe, in sheer self-defense, compelled to use it to its
stances to let us borrow, and by the simple means of refusing our finance bills refuses under these circumticity useless. Thus instead of securing additional assistance at the most criticalrenders our reserve of elasmoment, we find ourselves
suddenly forced to dispense with a most important part of our machinery
upon which we were wont to
rely in normal times."
Congressman Fowler, of New Jersey, has for some years been an enthusiastic
persistency and eloquence his impressed his views upon us. He is strong on the currency reformer, and with
expansion side but when Ile
proposes methods of contraction he seems to be at sea and beyond his depth.
One very serious result of our present system is, that on the approach of bad business
times each individual wisely managed bank begins to accumulate cash and reserve by contracting its
pared for anticipated stringency. Thus when the business community is in special loans in order to be prebanks lend less than usual. As a result conditions are made worse. The banks areneed of accommodation the
not to be blamed for such
action. Indeed it is necessary for th e protection of themselves and their depositors,
banking system to which they can apply later on for relief when help may be urgentlyas they have no central
needed.
The consequences of an unscientific monetary system are widespread. When undue
contraction results
from a previous expansion, as shown by Mr. Fargan's statement, merchants with falling sales
have to sacrifice
stocks to realize funds to meet obligations, and the weaker ones frequently fail.
duction, and discharge hands. These, unless thrifty and with means to keep them Manufacturers curtail progoing are reduced to poverty. Their purchasing power is cut off or diminished and in consequence retail merchants, find
their business
seriously lessened. Many men who have made small paymentson the purchase of a house
through failure in
business or loss of employment, are forced to relinquish their investments, and lose what had
them. In other words, society is so interwoven that all classes suffer when had financial and been put into
business conditions prevail.
The writer has a plan to propose, and while it does not cover all the ground, it will
checking the evils of our over-supply of money at one season of the year, and our shortagego a great way in
at
until we have a Central Bank or some other system to answer the same pnrpnce,. will greatly the other, and
tion. Indeed, it will be beneficial even after a more comprehensive plan is put into operatio help the situan.
Something greatly in its favor is its simplicity. It could be put into operation by four or five
in New York at a fifteen-minute conference; and yet I challen(g'e allV banker or writer on economi gentlemen
cs to prove
that it will not he greatly helpful.
The plan is that not less than f,tir or five of the leading New York banks unite to discoura
ge
cumulation of money in New York from about March to September, by lowering the rate of interest the acthey will
pay for balances from (nit-of-town banks and others to whom they pay interest to the
extent of one-half or
one per cent or more if necessary, and that from September to February they enconrage tli
‘
thtre iie ay ie nio nt
l shb p er itof
money to New York by raising the rate to correspond with its supply and the demand







If four or five of the larger banks in New York would adopt the policy of changing the interest rate as
• suggested the others would be forced to follow their example. This in turn would compel the banks of Chicago and St. Louis, the other Central Reserve Cities, to take similar action. The banks in the ordinary Reserve Cities—Philadelphia, Boston, Albany, Pittsburg, Cincinnati, and the rest would feel the force of the action, and would be compelled to govern their methods accordingly.
To indicate the wide fluctuations in the rate for call money within the past three or four years, I would
state that the average rate for November 1905 was 8 2-3 per cent, in December of that year 21T/2 per cent, in
/
/
November 1906 104 per cent, and in December 151 I per cent. In 1907—October 201 2 per cent, November 1G
per cent, and December over 12 per cent. As a contrast to this condition, there was a period of six months or
more in the spring and summer of 1908, when the average rate was about PA per cent and for six months
in 1909 the average rate was about two per cent.
Under these widely varying conditions in the money market the New York banks practically make no
change in the rate of interest which they pay for bank balances. Not having lowered the rate when money
was almost a drug in the market, they are not in a position to raise it in order to attract funds when they are
greatly needed. How much better for themselves and for the general business interests of the country i f a
different policy were adopted! How different this condition is from that shown by the statement I have quoted regarding the Bank of France, which claims that by not greatly varying its rates it has conferred incalculable benefit upon French trade in all its forms!
The estimated per capita circulation for May of this year was $34.59. If that is about the right average
for the year, it would seem that $33 per capita would be correct for the Spring and Summer, and that about
$36 per capita would serve our purpose in the Fall and Winter. What we need to do with the unnecessary $3
in the Spring and Summer is as far as possible, to put it out of business, or compel each one of our population of ninety or one hundred millions of people to keep it in his or her pocket or stocking, and bring it out
for use again in the Fall. But no, its owner must have interest on it, and so it goes into his bank, and ultimately it goes to New York, attracted by the interest, and there becomes congested and breaks out like congested blood in the human circulation, leading in one case to unhealthy speculations, and in the other to various bodily disorders.
I believe that the policy I advocate would pay each individual bank in New York better than the present
method, and the interest received by the out-of-town banks would average about the same as they now receive,
but even if there should be some slight loss in either direction, it would be compensated for many times over
by the advantage of doing business on a more stable basis.
If we individually have any money to invest in standard securities we may investigate the history and operations, and the ability and honesty of the management of any railroad or other large corporation, and find all
the conditions connected with it entirely satisfactory, but after all this is done our investment becomes largely
a matter of betting on the money market.
It is sometimes said that strong financial interests desire the continuance of the present system of currency circulation in order that they may make large profits out of the violent changes in the money market.
Of this I have no proof, but I will say this: that if strong financial operators desire to do business on such
a basis the present currency laws and the practice of the New York banks will greatly aid them in accomplishing their purpose.
A few years ago we heard much on the subject of New York becoming the money center of the world.
It cannot look forward to that distinction until our currency laws are perfected, and .its banks are prepared to
do business on broad lines and in harmony with the laws of supply and demand, and are willing to do their
proper share in steadying the money market of the world.
It is imperative for the hest results in business that legislation be enacted to eliminate the evils incident to
our present rigid supply of currency and credit. Business men who realize the hazard of commercial operations as now conducted should urge the remedy—the Central Bank under strict governmental control. Meanwhile the interest-regulating coalition such as I have suggested would provide immediate relief and would
constitute as well a valuable permanent feature of our machinery of monetary regulation.




-In relation to
House Bin No. 187, introduced on Dec. 2, 1907 by Congressman W. H. Graham.
House Bill No. 7607, introduced on Dec. 12, 1907 by Congressman J. R. Sherwood.
Senate Bill No. 1239, introduced (by request) on December 5, 1907 by
Senator P. C. Knox

Providing for a bond-secured elastic emergency currency to be issued by the
United States Treasury.
Features: Absolute safety; perfect and automatic elasticity;
prevents currency monopoly; automatically provides
gold coin for redemption purposes; retains government
control of the money supply; instantaneous application;
absolutely fair to all interests and will be approved by
the public.
Senator Nelson W. Aldrich.
Chairman, Senate Committee on Finance; and
Hon. Charles N. Fowler,
Chairman Committee on Banking and Currency
of the House of Representatives,
Washington, I). C.
Gentlemen:—
Permit me to say most respectfully that I believe, in all the
discussion of the currency question that has taken place thus far,
one all-important fact has been entirely overlooked. That fact is that
national bank currency or any Bank currency cannot be successfully
employed as emergency currency, one reason being that it cannot be
ordered, printed, signed, and placed into circulation rapidly enough to
check a panic in its inception.
The speed at which a panic develops, renders quick and decisive
action at the very beginning of any financial disturbance absolutely
necessary. It must not be forgotten that the present panic or currency
famine developed and reached its climax within ten days after the
Heinze crash.
A panic Is invariably precipitated by some great financial crash,
am! is followed by a wide-spread distrust and lack of confidence in
financial institutions, and a rapid withdrawal of money from circulation. Such a condition must be met instantly by an even more rapid
increase in the volume of currency. If such an expansion of the cur-




rency were brought about quietly, promptly and without the issuing of
new and strange forms of money, such as clearing house checks, without the blare of trumpets, without flying conspicuous signals of distress, any currency panic could be crushed in its infancy, before it
were permitted to disturb business, and even before it caused general
alarm.
The present national bank currency has served its purpose well,
and will continue to have a broad field of usefulness, unless it is debased or rendered less secure by future legislation that will tend to
justly make it the object of suspicion. But the national bank currency
system is worse than useless in combatting an emergency such as the
one through which we are now passing, for the reason that its volume
cannot be made to expand to the enormous extent that is necessary,
until long after the panic has passed. And what is perhaps more
serious, through its cumbrous operations of expansion and contraction, the volume of currency is still being rapidly inflated long after
the time when conservatism demands that it begin to contract.
The operation of the system (luring the present panic is sufficient
Proof of these statements. It will require almost a year to contract the
national bank currency to the extent that it has been expanded in the
last thirty days, but nevertheless the Controller of the Currency must
continue to till back orders of the banks for more currency. We had
it similar experience with national bank currency in 1893.
If national banks are to be permitted to issue additional notes
without the deposit of additional bonds, the confidence insuring legend
"secured by bonds deposited with the United States Treasurer at
Washington, D. C." must be stricken off of national bank notes. In
the light of present conditions is there any conservative national
banker who would dare to take this plunge?
No currency scheme that, ignores the currency needs of savings
banks, trust companies, and other state banks, and provides only
for the needs of National Banks, can be either just or effective, for
the reasons-:--First, that it would ignore the rights and interests of the vast
majority of the people and would place the interests of the majority
at the mercy of the few, and,
Second, that the class of bonds which must. be used as security
for any sound elastic currency are not invested in by national banks,
but are very largely invested in by savings banks, trust companies
and such institutions.
No asset currency plan or uncovered note plan can be effective
for the reason that it will tend to impair the credit of all national
bank currency and thus bring about more serious conditions than are
now in evidence. Following its enactment, gold would surely go to a
premium and would soon disappear.
Almost all suggested currency plans tend toward a private monoply of the money issuing power, which should be purely a governmental function. Most of them are mere temporary expedients based
upon a selfish desire of certain bankers to borrow the Government's
credit without paying its full value for it. They provide for the
inflation of national bank currency without deposits of additional
bonds as security, and with no adequate tax provision to force eon traction at any future time: thus they would surely store up trouble
for the future.
2




None of these plans provide for the currency needs 'of savings
banks, trust, companies, and other State banks, whose depositors outnumber national bank depositors at least ten to one, and whose deposits aggregate more than the deposits in all national banks.
The purely benevolent savings institutions of the city of greater New York, (which have not one dollar of capital stock) have on
deposit the enormous sum of one thousand millions of dollars, or
ten times the capital stock of all national banks in that city. Fully
one-half of this amount is invested in high class bonds such as Government, State, county and municipal bonds. Yet under the present
grossly unjust law these institutions, in an emergency, are literally at
the mercy of the national banks.
Even though the national banks of New York City were disposed
to be generous in a currency famine, their combined power to issue
emergency currency under the most favorable "asset" or "credit" plan
yet proposed would be limited by the amount of their capital stock to
the comparatively small sum of fifty-eight (58) millions of dollars.
This would be insufficient for their own needs in such an emergency,
and the savings banks, trust companies, and other State banks depending upon them, would, then as now, be left almost absolutely
helpless.
The comparatively small capital stock of all national banks when
compared with the total deposits in all banks, savings institutions,
and trust companies, seems to me to be an unanswerable argument
against any form of national bank "credit" or "asset" emergency currency.
I am firmly convinced, and I cannot state it too emphatically, that
any emergency currency, to be effective, must be heavily taxed Government Currency, and it must be printed and stored in advance in
large quantities ready for issue and shipment on a moment's notice to
any holder of Government, State, County or municipal bonds. Further
than this, and this is most important. the notes must not be of a kind
to cause alarm, and, therefore, must not be different than those with
which the public is familiar and which are in general circulation at all
times.
Right here let me say that, the issuing of "clearing house certificates and pay checks" is the most positive and certain method yet
devised for disturbing confidence and spreading alarm.
Clearing
house certificates and checks are rightly looked upon as official signals of great distress. Every dollar of clearing house certificates
placed into circulation causes the frightened public to withdraw from
circulation probably fifty dollars of lawful money. They should be prohibited by law, and the law should be rigidly enforced.
After close observation and careful study of the currency question during the last nineteen years, I am convinced that the plan outlined by the bills introduced into the House by Congressman W. H.
Graham, of Pennsylvania, on Dec. 2nd, 1907. (H. B. No. 187), by Congressman Isaac R. Sherwood of Ohio on December 12, 1907 (House Bill
No. 7607) and into the Senate by Senator Knox (at my request although he may, or may not approve of the plan outlined in the bill) on
Dee. 5. 1907 (Senate Bill No. 1239) would provide permanently for a
sore elastic currency, that would automatically. promptly and effectively meet any conceivable emergency.
-3




Brief Explanation of House Bill No. 7607, which
applies to all three bills mentioned.
This bill is intended to supply permanently a safe elastic currency system and also to immediately meet the crying financial needs
of the whole country. Further than this, it. is intended as an argument
to prove that the elastic currency problem now before the nation can
be solved along sound, conservative lines without creating a monopoly
of the currency issuing Dower, by the adoption of a new form of bond secured legal tender G,:ernment notes here described, and to prove
that a resort, either in this great emergency or at any time in the
future, to any form of o caged "wild cat", or "credit" or "asset" curtency or "uncovered notes" or to any form of semi-private central
bank of issue or to any combination of national banks, is absolutely
unnecessary and most unwise, particularly at this time.
Briefly stated, this bill provides as follows:
First, The immediate printing of a large supply of a new form of
legal tender Government notes, to be called "UNITED STATES CURRENCY NOTES", said notes to combine the best features of "Gold
Certificates," "National Bank Notes," and "Greenbacks" and therefore
to be
1. Legal Tender.
2. Payable in Gold Coin.
3. Secured by and issued only upon the deposit of gold coin,
(which would be used exclusively for their redemption,) or upon the
deposit of Government, State, County or municipal bonds as security.
Second.—The present laws authorizing the issue of gold certificates cause the absorption of too large a proportion of the gold supply
of the country, and tend to render gold unavailable for redemption purposes, but the passage of this bill would not repeal these or any other
of the currency laws now in operation. It would merely supply an additional elastic circulating medium of exchange that could be issued
quickly in emergencies, and that would automatically cause contraction when not urgently needed. The repeal of these or any other
defective currency laws could be and should be delayed until some
more favorable time, when such action would be less liable to adversely affect credit.
Third. Through the operation of this bill an abundant, supply ef
"United States Currency Notes" of various denominations would hr
Printed and would at all times he stored in the Treasury and Sul'
Treasuries ready for immediate shipment to any one, upon the receipt of such aforementioned bonds as security. For this reason no
currency famine could possibly occur in the future so long as there
was a plentiful supply of such high class bonds in existence.
Fourth. Contraction would be positively and automatically secured by a five (5%) per centum of a seven (7%) per centum tax upon
the depositor of the bonds, the lesser amount of tax applying to Government bonds. This tax would be sufficiently burdensome to cause
the bond depositor to redeem his bonds by returning "United Stateh
Currency Notes" or GOLD COIN to the Treasury as soon as financial
conditions became normal.
4




Fifth. The bill would require the United States Treasury to perform the functions of a central bank of issue and redemption so far
as emergency currency was concerned, similar to the Bank of England, the Bank of France, and the imperial Bank of Germany, except
that no currency would be issued by it unless bonds were deposited as
security, or unless gold coin was deposited in exchange. Thus the
many well founded objections that have been and would be made to
chartering a central United States Bank of issue operated for individual profit and creating an absolute monopoly of the currency issuing power, would not apply to this plan, whereas all of the great public benefits that could come from such a central bank would be secured by the adoption of the plan here outlined.
Sixth. Although the "United States Currency Notes" provided
for would be Legal Tender Government Notes, all of the trumped-up
objections heretofore made to "Greenbacks" have been removed, and
the bill will not meet with sound objection on that. score. The operation of this bill would not cause "inflation", but merely "conversion"
of one form of wealth into another, as business conditions required.
It would not increase the Government debt to the extent of one dollar.
Seventh. One of the most difficult problems in connection with
the currency question is to provide the Treasury with gold coin for
redemption purposes. A disappearing gold redemption fund during
panics has heretofore made enormously expensive bond issues necessary. The operation of section four of this bill would automatically
supply the treasury with gold coin for redemption purposes, for the
depositors of bonds could in most cases, more readily procure gold
coin than "Currency Notes" with which to redeem their bonds and
thus stop the tax or interest charges. The "Currency Notes" would
therefore remain in circulation and the gold coin would be added to a
redemption fund to be used only for the redemption of these notes.
Before closing this letter I desire to answer a false statement that
Is doing much mischief every day because no one has taken the trouble
to expose it. It has been stated, and the statement has been frequently repeated, that neither national bank currency or any other form of
bond-secured currency can be made elastic. I reply, without fear of
contradiction, that any form of currency may be made elastic by the
imposition of a tax or interest charge sufficiently burdensome to catv-40
CONTRACTION in normal or "boom" times, and not so excessive as
to prevent EXPANSION in times of stress. In this connection tile
fact must not be overlooked that the ten (10) per cent. tax imposed
by the national government on state bank notes, has been so high
as to absolutely prevent the circulation of state bank notes, since it
was imposed forty years ago. Without, a proper tax or interest charge,
no currency system can be made automatically elastic. The present
national bank currency could easily be made ELASTIC without impairing its SAFETY by simply imposing upon its issuers a graduated
tax ranging from three per centum to seven per centum per annum.
Considered from the standpoint of the merchant, the wage earner,
the small banker„ the farmer, the manufacturer; in short from the
standpoint of all legitimate business men, no greater crime could be
committed in the name of "Currency Reform" than to grant to a central bank or to a combination of national or other banks, a monopoly
of the power to control the money supply. Any man or set of men
who have the power to extensively and quickly expand or contract
the amount of money in circulation, thereby also have the power to
make or break a panic at will.
5




The national constitution wisely provides, and the vast majority
the voters will insist, that the power to control the money supply
Of
shall be vested only in the national Government. In conclusion let
me say that absolute and unquestioned safety is the one currency
consideration that must outweigh all others.
I sincerely urge you to carefully consider the provisions of House
Bill No. 7607.
Yours very respectfully,
CLARENCE V. TIERS.
Address: Box 305, Pittsburgh, Pa.

60th Congress
1st Session.

II. R. 7607.

In the House of Representatives
December 12, 1907.

Mr. Sherwood introduced the following bill; which was referred
to the Committee on Banking and Currency and ordered to be printed.

A Bill
To provide an elastic currency by making it lawful for any or all holders of gold coin of the United States or of bonds of the United
States, or of bonds of any State, county, or munic1pality within the
United States which may be approved by the Secretary of the
Treasury , to deposit said coin or bonds with the Treasurer of the
United States, or any assistant treasurer, and so secure therefor
a new form of legal-tender Government notes called "United
States Currency Notes;" and providing for a tax on said depositors
of bonds while said bonds remain on deposit.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That the Secretary
of the Treasury is hereby authorized and required, as rapidly as practicable, to cause to be provided and kept in readiness for issuing, upon
such demand or demands as may be made according to the provisions of this Act, a supply of circulating notes. to be known as "United States Currency Notes". Said notes, in the payment of all debts,
either public or private, shall be legal tender for a dollar of twentyfive and eight-tenths grains of gold, nine-tenths fine, for each dollar
they represent, and when presented to the United States Treasury
they shall be redeemed in gold coin of the United States, and when
so redeemed they may be reissued in the manner provided in this Act
for their first issue. Said notes shall he provided in sufficient quantities to insure there being stored in the Treasury and subtreasuries nt
all times ready for issue an amount of them equivalent to five hundred millions of dollars, and they shall be issued only when secured




by deposits of bonds as provided in section three of this Act or in exchange for gold coin of the United States. United States Currency
Notes, when held by any national banking association may be counted
as a part of its lawful reserve.
SEC. 2. That, in order to furnish suitable notes for circulation,
the Secretary of the Treasury shall cause plates and dies to be engraved in the best manner to guard against counterfeiting and fraudulent alterations, and shall have printed therefrom and numbered such
quantity of circulating notes of the denomination of five dollars, ten
dollars, twenty dollars, fifty dollars, one hundred dollars, five hundred dollars, one thousand dollars, five thousand dollars, and ten
thousand dollars as may be required to supply the demands of those
entitled to receive the same. Such notes shall express upon their face
or back—
First. That they are secured by gold coin, or by bonds deposited
with the Treasurer of the United States.
Second. That in the payment of all debts, either public or private,
they shall be legal tender for a dollar of twenty-five and eight-tenths
grains of gold, nine-tenths fine, for each dollar they represent.
Third. That United States Currency Notes, if presented to the
Treasurer of the United States, shall be payable in gold coin of the
United States.
Fourth. The engraved signatures of the Treasurer and Register
and the imprint of the seal of the Treasury.
Fifth. Such devices and such other statements, not inconsistent
with the provisions of this Act, as the Secretary of the Treasury shall,
by regulation, direct.
SEC. 3. That any and all national banking associations, savings
institutions, State banks, trust companies, or other corporations or
firms, or individuals so desiring may deposit with the Treasurer of the
United States, or any assistant treasurer, bonds of the United States,
or of any State, county, or municipality in the United States which may
be approved by the Secretary of the Treasury, and such depositors
shall receive in exchange for the bonds deposited, United States Currency Notes, such as are provided for by sections one and two of this
Act, in amounts equal to ninety-five per centum in the case of ITnited
States bonds, and to seventy-five per centum in the case of State, county, municipal bonds, of the par value of the bonds deposited: Provided however, that should the market value of such bonds, in the
judgment, of the Secretary of the Treasury, be or become depreciated
below their par value, the Treasurer of the United States is hereby
directed to require the depositor to deposit in addition lawful money
of the United States equal to the depreciation of the market value of
said bonds below their par value; and should the depositor fail to
promptly make the said additional deposits of lawful money, or should
he fail for three months to pay the tax hereinafter provided for, the
Treasurer of the United States is hereby required to sell said bonds at
public sale. Each depositor of bonds under the provisions of this Act
shall pay quarterly, on the first days of March, June, September, and
December, to the Treasurer of the United States, a tax equal to five
per centum per annum if United States bonds are deposited, and to
seven per cent= per annum if other bonds are deposited, on the




amount of said notes received by him during the time said bonds remain on deposit, and each depositor shall receive all interest on said
bonds the same as though they were in his own possession. All
money received by the Treasury Department in payment of the tax
herein provided for shall be used for the purchase of gold coin, and
said gold coin shall be added to the separate fund provided by Section 4 of this Act for the redemption of United States Currency Notes.
SEC. 4. That any depositor of bonds under this Act, or his lawful representatives, successors, or assigns, may at any time demand
and receive the bonds deposited, or the proceeds of their sale, as provided by this Act, together with any and all deposits of lawful money
which the depositor may have been required to make, upon the return to the Treasurer of the United States of an amount of United
States Currency Notes or of gold coin of the United States equal to
the face value of the notes received by the said depositor and the unpaid tax as herein provided. Any gold coin received by the Treasury
Department under the operations of this Act, shall be placed into a
separate fund and used only for the redemption of the United States
Currency Notes herein provided for. So much of the redemption fund,
provided for by the Act of March fourteenth, nineteen hundred, as
shall be necessary for the redemption of any of these notes shall be
temporarily transferred to this separate fund and replaced as soon as
possible.
SEC. 5. That all Acts or parts of Acts inconsistent herewith are
hcreby repealed so far as they are inconsieent with this Act.

8

CIRCULAR RELATIVE TO THE VALUE OF TII E MEXICAN AND TRADE-DOLLAR.

1878.
Department No. SO.
Mint Bureau.

tpartment

Erea5urp

oFFICE OF THE DIRECTOR OF THE MINT,
i it .4X
ll a

•

611>
,

icS 7ffl
3

In consequence of the number of inquiries received, relative to the value of the Mexican silver dollar,
and the terms on which it is received at the Mints, the following information is furnished:
Section 3584, Revised Statutes United States, declares that "No foreign gold or silver coins shall be
a legal tender in the payment of debts."
The Mexican dollar, therefore, has only a value as bullion, which depends upon the price of silver;
at the present price of silver bullion it is worth about 90.8 cents, in gold, per piece. Its circulation as
money in the United States is optional, and at whatever value may be agreed upon.
The United States trade-dollar also is not a legal tender, and, therefore, has only a bullion value.
The standard silver dollar being a legal tender for all debts, public and private, is received at par at
Government offices in payment of dues, differing in this respect from the Mexican and trade-dollar,
all
which are not received.
Mexican dollars, as well as all other foreign silver coins and United States trade-dollars, are purchased at the Mints at Philadelphia, San Francisco, and Carson, and the Assay Office at New York, at
the equivalent of the London rate for silver bullion on the (lay of purchase, less one-half cent per ounce
of fine silver contained.
All silver coins so purchased are melted and assayed, and the seller paid for the fine silver contained,
in standard silver dollars.
All parties desiring to sell foreign silver coins or trade-dollars to the Government on the above terms,
will send them at their own expense to the Superintendent of the Mint at Philadelphia, San Francisco,
or Carson, or of the Assay Office at New York. Express charges on the silver dollars sent in return also
to be paid by the seller. All correspondence relative to silver coins so sent to be addressed to the
Superintendent of the Mint or Assay Office to which they are forwarded.
The following table shows the bullion value, in cents and tenths of a cent, United States legal-tender
coin, of a Mexican silver dollar of full legal weight and fineness, at various London quotations for silver
bullion, calculated at the par of exchange, $4.86, to the sterling:




London
quotation, in
pence.

Value of
Mexican dollar,
in cents.

50
50+
50+
50f
51
51+
51+
51f
52
52+
52+

8l;. 1
51).;)
86.9
87. 4
87.8
88.2
88.7
89.1
89.5
89.9
90. 4

London
quotation, in
pence.

521
53
5:31
53i
531
54
54+
54+
541
55
55+

Value of
Mexican dollar,
in cents.

90.
91. 2
91.6
92. 1
92.5
93
93. 4
93.
94.3
94.7
9. 1
-).

London
quotation, in
pence.

55i
551
56
5(4
56+
56f
57
571
57+
57f
58

Value of
Mexican dollar,
in cents.

95.6
96
96. 4
96.9
97. 3
97.7
98.2
98.6
99
99.4
99.9

NOTE.
-The trade-dollar is worth two-tenths of a cent more than the Mexican dollar at the respective quotations furnished.
The deduct ion at the Mint of one-hall cent per ounce of line silver contained amounts to about four mills on the dollar.

IL R. LINDERMAN,
Director of the Mint.

I
titan fur
Trutt-al National Vat*




of Josue

BY SAMUEL ADAMS TRUFANT
Cashier Citizens Bank of Louisiana, New Orleans




*

•

Plan for
Central National Bank of Issue
HE proposed monetary legislation which is likely to
grow out of the recommendation of the National
Monetary Commission, ought to provide for amendments to the National Banking Act, the operation of which
would be so favorable to the banks chartered under the
National banking law that all the state banks of check and
deposit would shortly be led to give up their charters, and
qualify under the amended National Banking Act. We
ought to have in this country but one 'banking system for
banks of check and deposit, and by so amending the National Banking Act as to provide for the capital of a Central Bank of issue and discount, I think that object can be
accomplished. Safe deposits, savings banks and trust companies should be left to operate under their state banking

T

laws.
I would suggest that the National Banking AO be so
amended as to require each ibank chartered under the National Banking Act to subscribe for the stock of the Central
Bank of issue and discount, 33 1-3 per cent. of their capital
and surplus; that the capital of the Central Bank should
not be limiLed to any specific amount. but may be increased
or decreased according to the number of banks qualifying
under the 'National Banking Act, and that. the entire capital
of the Central Bank, represented by 33 1-3 per cent, of the
entire capital and surplus of the National banks, should be
invested in gold and 'held in reserve against the authorized
Issue of the notes of the bank, which should, in my opinion,
only be limited to an amount equal to the entire capital

and surplus presented by the National banks. The Central Bank should not issue notes of denominations smaller
than $5.
I would suggest that the stock of the 'Central Bank held
by the National banks as provided above, should 'be nontransferrable, but remain the property of the bank to
whom it is issued and ce.unted as part of their legal reserve
to that extent or amount.
To Do Business With National Banks Only.
The !Central Bank should be permitted to re-discount
only for National banks up to their full capital and surplus to receive deposirs only of National banks on which
the rate should be fixed at 2 per cent, on daily balances.
I cannot see that it is necessary—at least in the beginning---to in any way disturb the present workings of the
U. S. Treasury or the present method of bond-secured National bank note issue. In fact, I think it is necessary to
propose as few radical changes as possible in the initiation
of this important monetary departure. It. will be several
years at least—possibly five—before the Central Bank,
working under this proposed charter, or for that matter.
under any proposed charter, can satisfy the masses of the
people that it is not monopolistic, and is not subject to thb
control of any political party or any 'combination of financial interests of any one particular section. To popiilarizo
the granting of the charter to such a corporation, it would
be necessary to guard against just these misgivings cm the
part of the great masses of the people, and this is the rock
upon which I have :plit; how to provide for the board of
directors.
The Government, of course, must have recognition.
Create a board of twenty-five directors to include ex-officio
the Secretary of the Treasury, the Treasurer of the ITnited
States, the Director of the Mint, and the Assistant Treasurer of the United States stationed at New York, where the
headquarters of the hank should unquestionably be, and
provide for the election of twenty one directors by the bat-




4

)\

that the
lot of the National banks, and further provide
a committee of manoperation of the bank should rest in
nt management, composed of a manager and four assista
nt of th,
agers, the manager to be appointed by the Preside
ed or
United States, but to qualify only upon being confirm
directors.
elected by a majority of the twenty-one
ted, one
The four assistant, managers should be nomina
the Di
each respectively by the Secretary of the Treasury,
United States, and
rector of the Mint, the Treasurer of the
qualify only
the Assistant Treasurer at New York, and to
twenty.
when confirmed by a majority of the votes of the
elet•
one directors. I would suggest that these officers be
age or physical
ed for life or good behavior, under certain
disability restrictions.
Payment of Dividends.
decllre
The 'charter should provide that the bank may
cent. per annum
Femi-annual dividends not exceeding 5 per
to the Comptroller of the
All dividend checks to be payable
has
Currency for account of the bank in whose favor it
Bank that
been drawn 'only upon certificate of the Central
all claims for services rendered, assessments or losses
r,
growing out of re-discounts have been fully and satisfa
cent. per an•
torily adjusted. All profits in excess of 5 per
bank
num cumulative to be divided equally 'between the
and the general Government.
It seems to me that it might be well to have some provision to restrict the votes of the stock-holding banks for di.
rectors to those who either have served or at the present
time are serving as president :3f the 'clearing house in some
of the largest cities, to be designated in the charter.
The manager of the Central Bank should receive a sala-v
of thirty-five thousand dollars a year, and the four assistant managers should receive a salary of twenty thousand
dollars a year. The ,twenty-one directors should be required
to meet at least four times a year, and they should be allowed a compensation of five hundred dollars each meeting, and traveling expenses.
5

Capitalization of the Central Bank.
Assuming the capital and surplus of the National banks
now incorporated amount to about $1,350,000,000, and the
capital and surplus of the state banks, operating as banks
of cheek and deposit, amount to $750,000,000, 33 1-3 of that
capitalization would be approximately $666,000,000 of gold,
which would form the ,capital of the Central Bank, if all
the state .banks surrendered their charters and qualified under the amended National banking laws.
I regard 'the elastic feature as very important, for it provides that every bank of check and deposit should he
tweed to carry 33 1-3 per cent. of Its capital and surplus in
gold coin which is deposited with the Central Bank, but
the note-issuing power is vested only in the Central Bank.
There is no question but that if every bank in the United
States carried a gold reserve equal to 33 1-3 per cent. of an
authorized issue of bank notes, that that provision of itself
would be a sufficient safeguard, but the great trouble then
would be to establish the certainty that each bank had in
its vaults in gold the necessary 33 1-3 per cent., of its note
issue. Penalizing the bank for violation of this law even
to the extent of taking its charter away, would he a poor
consolation for the mischief which might be created by a
laxity of imprudent bankers.
The Government having given power to the Central Bank
to emit ,paper payable on demand, it must make certain
that the reserve is always held inviolate, and the Government must further accept the notes of the Central Bank for
any and all obligations except custom duties.
Our gold reserves are too light under the present system,
but with the gold reserve always in the vaults of the Central Bank, equal to 33 1-3 per cent. of the combined capital
and surplus of all the banks now incorporated or to he
hereafter incorporated under the National Balking Act, we
shall have established a basis for a circula.ing medium
which will be absolutely safe, and the issue r( gulated by
0




raising or lowering the rate of discount, so as to expand or
contract to meet the trade requirements with elasticity.
Savings Trust Departments.
No National bank rhould be permitted to operate a savings or trust department. Savings banks, safe deposit
banks and trust company features should be divorced from
the National banks. However, it would be wise for the
state laws governing the trust companies, safe deposit and
savings banks to restrict the operations of such institutions, so as to further safeguard these trust funds and draw
a more distinct and well defined line between the business
of investment and homestead companies, and the deposks
of savings and trust banks.
The Central Bank should rediscount commercial paper
which has not exceeding ninety days to run, or at the outside not more than four months, for National banks only
at a rate not to exceed 6 per cent., but no loans should be
made on paper secured by hank stock or real estate mortgages, but further loans to National banks should be made
en call or demand, secured by state, municipal or other
bonds, such as may be classed as safe investments for savings banks or by authority of the board of drectors for 90
per cent. of their market value, not exceeding par of such
bonds. The Central Bank should be prohibited from tran3acting business of any nature whatsoever, except with National banks. No Government funds should be deposited
In the Central Bank.
The most important thing is to get the great mass of the
people to understand that the Central Bank is not intended
to operate as a money-making institution, but to emit a
stable and elastic currency to facilitate the National banks
in providing a circulating medium which will at all times
respond to the requirements of the country.
The stock held by the National banks in the Central
Bank should be assessalble for any deficiency in the earnings, because under normal conditions the Bank is not likely to do a profitable business, and that is why I have Jug?

gested that the stock should be entitled to a cumulative
dividend of 5 per cent.
The term ot twenty-one directors should be by allotment, to be fixed so that .seven directors would retire after
serving three years, seven after serving four years, and
seven after serving five years. The chairman of the board
should . be elected by the twenty-one directors, and he
should be ex-officio of the finance or executive committtee.
There should be special compensation provided for committee meetings, and special meetings of the board should
be called by the executive committee or by the manager
upon application of any seven members of the board.
I would suggest a provision requiring the Government's
pro-rata of net earnings of the 'Central Bank, say 50 per
cent. of the net earnings after providing for dividend at 5
Ler cent. per annum, cumulative, to be used to retire the
present oustanding legal tender notes, and the bank should
distribute its surplus fund, if any, in special dividends to
the stockholding banks yearly.
The rate of discount should be fixed by the committee of
management. on Saturday of each week, after the close of
business, and the bank should be required to publish a
statement of its affairs including rate fixed for discount
on Saturday evening or Sunday morning.
Later on, it may be necessary to amend the act to create
the Central Bank, so as to provide for branch banks in Chicago, Sit. Louis, New Orleans and San Prancisco. It may
also be 'necessary to arrange for the Central Bank supers(ding the Sub-Yreasury in its service to the Government,
but I do not see any necessity for any branch banks at the
present. time.
The note issue of the Central Bank should of course the
exempt from taxation and the income should also be exempted from the 'special excise tax. To obtain exemption
from state and municipal taxation for the capital it may be
vecessary to locate the Central Bank in Washington.
(Reprinted fri.m THE FINANCIER, New Ynrk, November $, 1909,)




SUPPLEMENT TO

CURRENCY REFORM
THE PARAMOUNT
ISSUE.

THE REMEDY.
Memphis, Tenn., March 12th, 1910.
Dear Sir:—Enclosed herewith I mail you
complimentary one of my pamhlets, "Currency
Reform the Paramount. Issue," which it' you
read carefully I think you will find interesting,
perhaps instructive. After reading I would like
you to write me any facts that may come into
your mind that can help me in writing my later
amplitiel edition of this article.
With an expanding currency the automobile
classes are jubilant, being profited at. the expense of the s,reet car masses, "onto whose
brows the crown of thorns it tightly pressed
down" by rising prices. I am no Socialist. It
is to the interest of every nation to have a
smaller per capita of money than any other nation. Let the gold miners quit their harmful
,
occupation of digging gold and go back to the
farms and raise foodstuffs, which is something
worth while. cold intrinsically is not worth
so much Ps iron. Its free coinage into money
is what makes gold valuable. Redundant. currency is the sole true tap root. cause of high




a

prices. TI:e high protective tariff and all other
causes are only the natural outgrowths therefrom. That high prices are in every way un(Lesirable is clearly shown in my pamphlet of
28 pages (single copies 10 cents).
The remedy for high prices is to stop watering our currency with 'national bank bills and
free coined gold money. Our mints ought to
take as toll at least one-half of all the gold or
gold and silver brought to then1 for coinage
1
into money. The seigniorage sho Ild be used.
First: In paying off the governme t bonds, by
means of which the national banks water our
currency ‘Aith their bank notes. Secondly: In
paying off the about $346,681,016 of outstan(1ini.
tender greenback flat money. Thirdly:
fit creating a gold reserve emergency currency,
such as the Bank of France, Bank of England
and, I think, Bank of Germany, have. In !his
way we might in time become again, as in 1835,
a nation without debt and have cash gold
money in bank. A consummation greatly to
be desired. I am met with the objection that
other nations will continue to free coin gold.
This reminds me of the old hackneyed catchword, "Prohibition won't Prohibit." Let. other
nations continue to free coin gold if they have
no better sense. They cannot thereby put us
into any worse fix than we are already in, and
they may ruin themselves. I believe when we
stop free coining gold all the rest of the worl I
will voluntarily do likeAise. There will not
have to be any international agreement. They
will fall all over themselves trying to see who
can stop first. I have seen it stated that the
gold money in existence at the time of Napty
Icon I was only $500,000,000. If I his is irue
000 we paid him for the Louisiana
the $15,000,
urchase was not such a .bagatelle after all.
I
It was perhaps as hard for us to pay that
amount at. that time as it would be for us to
000 now. I have also seen it
Pay $1,
000,
000,




6

stated that the production of gold within the
last nine years is $3,300,000,000.
Asset currency! Good Lord, deliver us! This
financial heresy must have originated among
the stock gamblers of Wall st. The Aldrich.
Vreeland $5, ;0,000,000 emergency money is asset currency. When I was studying in Germany, 1869-1871, during which time occurred
the Franco-Prussian war, I lipid my money in
/
a savings bank in Leipsic, bearing 21 2 per cent.
interest. I could not check this money out, but
whenever I needed money had to go in person
to the bank with my pass-book and have the
amount withdrawn entered therein.
I suppose some such system is in vogue in
France, and that the checking habit is not so
prevalent there as here. During 1909 we sola
China all told only $27,000,000. Some years
ago, when cotton was worth less than half its
present. price, 15 cents for middling, we sold
$50,000,000 of manufactured cotton goods alone.
At our present prices I think likely it would be
cheaper to wear silk than cotton in China if
they had to buy of us. But they raise To per
cent, of the cotton they consume. A great part
of China is cultivated like a garden. The land
I ractically belongs to the government, and if
a Chinaman does not cultivate his land properly it. is taken away from him. We have
learned much from the Chinese and could learn
more if we were not so self-satisfied. If we
:
could quietly lose the Philippine, *
our prestige it would be a
ha 1113, however, if we coul
self-con( eit at the same
more profitable to lose
coold only exchange a.
sions for Canada we w(
whi!e man's burden ai
navy to protect our ',possessions. I ree(
an Insurance comp:.

policy on my life in substance as
follo
"About a year ago you and I were ws, viz.:
in correspondence about the depreciation in the
purchasing power of our money because of
the inflation of our currency. You wrote me at
that
lime that you could not see it as did.
I
I wrote
you to watch and think, which if you
have done
you now see it as I do. One-third of the
purchasing power of that. big wad of 'good
giltedge bonds' you have that belongs to the 'poor
widows and orphans has been lost durin
g the
last 13 years by teason of the inflation of
our
currency. Why don't. you insurance men confe
r
together and stop the further debaseme
nt by
expansion of our currency? Are you a lot
of
blind bats, or don't you care a copper, just so
long as you can wear fine linen and fare sump
tuously every day?" Although I am still
flying
the "Rebel" flag, I am now in open rebel
lion
only against the further debasement by expa
nsion of our currency. I know that. the war ended nearly 50 years ago, and that about every
one who had anything to do with it is dead and
all the rest of us will be dead soon. On May
9, 1864, when I was only 15 years, 2
months,
18 days old, I voluntarily enlisted into the
Confederate army, and I am proud of it. I
thought then I was right and know now I was
right then. but I am satiofied with the rc.sult
,
if those few meddlesome ones of the Yankees
will only let us "requiescat in pace" and let us
own home affairs, to suit ourselves.
--v respectfully,
A. C. LAKE,
2'S North Front. St.,
Memphis, Tenn.

.if




(Copyright, 1910, by A. C. Lake, No. 28 North
Front Street, Memphis, Tenn.)

I CURRENCY REFORM
1

THE PARAMOUNT
ISSUE

The Only Way for the United States of America
Ever to Attain Commercial Supremacy in
the Markets of the World and on
the High Seas.

Third Edition. All Rights Reserved.

Read carefully and pass along to another intelligent, thoughtful man. This circular, price
$.10 per thousand, $10 per hundred, is for brainy
people; if you get one gratis it is a compliment,
to you.







We Need Less Money, or Why the Free Coinage
of Gold Should Immediately Cease.
Memphis, Tenn., Jan. 8, 1909.
lbm. William Jennings Bryan,
Fairview, Lincoln, Nebraska:
Dear Sir—Although you have been the chief
advocate of an inflated currency, l think you
must admit we now have enough, and believing
you have more influence in forming public opinion than any one man in the United States, I
appeal to you to help stop the further watering
of our monetary system. Inflation would be all
right 1F it did not depreciate purchasing power.
Add 1 per cent to our per capita of money and
you decrease its purchasing power 1 per cent.
Double our per capita circulation and you double
prices. Double prices and you double the amount
of money required for business, so there will be
as much lack of money as before for business
purposes; an endless din in. So what is the use?
Double our currency and you rob the bloated
bondholder of one-half, the thrifty savings bank
depositors of one-half, and the poor widows and
orphans of one-half of their life insurance. How
many of these latter there are I do not know,
but there must be millions of them. I see in the
Philadelphia Saturday Evening Post of December
19, 1908, page 18, volutin, 1, that, there are in
the ITnited States 8,588,000 savings bank depositors, and that their deposits amount to $3,690,000,000. This is $300,000,000 or $400,000,000 more
than all the money in the United States. Then
there are the old war veterans and clerks with
fixed salaries with their dependents numbering
millions more, who have been grievously wronged.
For about thirteeh years now all of these people
have been defrauded of their pensions, interest,
labor and capital by reason of the purchasing
power of their money shrinking up, caused by
inflation. However, but few of them know it.
How can we with $34.98 per capita and still increasiTr lab(alt 2 per vent per annum in gold and
•
3

more rapidly in paper On a gold basis) hope to
c(mtinue to sell China With $2.00 (in silver, worth
(Pills on the dollar in gol(l) and Japan with
$4.15 per capita and compete with other countries
with a smaller per capita than ours and conse(uently with lower wages (but higher purchasing
power) and prices than ours, for the world's trade
and the ocean's shipping, the latter of which we
lost years ago because of our high wages and
prices? Japan is driving our few merchant vessels from the Pacific. her ships are big paying
propositions, while ours are losers. Last year
we sold her $3,100,000 of cereals and bought of
her $15,000,000 of rice and $9,000,000 of soy
beans, things our own farmers ought, to raise.
This, of course, gives her more purchasing power
to buy in cheaper markets than ours and to establish cotton factories and other home industries.
Many more factories can be built there than here
for this money. Even our peanut growers are
asking (December 17, 1908) for a protective tariff
of 2 cents a pound. how long will it be before
our corn and wheat will need a tariff for protection against the miscalled "pauper" labor of the
world? They maybe get as many comforts with
their low high purchasing power wages as do our
working classes with their high low purchasing
power wages. I see in the Memphis Commercial
Appeal of December 26, 1908, page 14, column 5,
ha I our i caper trust
going to estaldish factories in France and Germany. Query: llow long
will it be before our cotton factories will be
forced to move to China, Japan and other countries, where money is scarcer and consequently
worth more than here and the cost of living and
wages are therefore less? The American Tobacco
Trust already has factories in China and Japan.
In Japan money is worth, I thi,,k, about, ten times
and in China about twenty timeA as much as here.
Mien all our trade is gone what use will our
"improvements" be? We will have killed the
goose that laid the golden egg and the incomes
from our boom "improvements" won't be enough
to keep them in usable repair. We are bottling

ourselves up with high prices caused by inflated
currency. The unlimited free coinage of silver
at 16 to 1, regardless of any other nation, could
not possibly have done us any more harm. It
would have immediately demonetized gold and
made money so scarce that a silver dollar would
have bought as much as a gold dollar bad been
buying and one gold dollar might have been worth
as much as two silver dollars. So that the gold
owners would have been greatly benefited and the
free silverites injured by free silver, except the
silver mine owners, of whom I tun one. Looking
back it is plain to my mind that
'each party was
fighting tooth and nail to keep from getting the
very thing. they each ardently wanted. Neither
knew how to get what they wanted. I today
would vote for the free coinage of our own silver
at 16 to 1 to remedy the danger threatening us
because of the plethora of money (dollars made
out of almost nothing). Inflation will wonderfully stimulate our "prosperity" temporarily. It,
will promote all kinds of wasteful, useless "improvements" and foolish extravagances and overspeculation and overproduction, stock gambling
and wildcat schemes generally that are bound to
bring about a disastrous reaction. We may for
a while have a grand and glorious time with
our easy money, like the young spendthrift just
come into his patrimony. But settlement, day is
eoming, and if iliflation is not stopped T thhik
we will have a financial earthquake sure enough
beside which the brought-on-by-too-much-easymoney panic of 1907 will be as nothing. The
amusing feature of the situation is that the COMmon people have not caught on even yet, and
think it is our wonderful robbing Peter to pay
Paul "prosperity," the trusts, the tariff, underproduction and our more luxurious scale of living
that are causing high prices, and do not know that
it Is watered currency. They are drunk on "prosperity" find say things are worth more now. It
never strikes them that things are worth just
exactly the same and that it, is really the money
that is worth less. Few even of the bondholders

4

5




(
realize they are being robbed. Every issue of
"good" bonds is quickly sold at, a premium. There
seems to be a mania sweeping over the country
for issuing and selling bonds. The big thieves
appear to think it, a good thing to get the money
now while our dollars are still worth 65 cents
in purchasing power as compared to the dollars
of 1896 and invest in "improvements" and pay
the bonds off twenty, thirty or forty years hence
in dollars that may not be worth 25 per cent of
their present purchasing power. But as rascality
often overreaches itself, they may find there is a
factor in their talculation they overlooked. .11
1
1896 the Bryanites were clamoring for higher
prices and more money to raise them. In 190s
they wanted lower prices and less tariff' to lower
them. In 1896 the Republicans told them there
was money enough and that business was done
mostly with checks anyway, which is true. But
now it is the Republicans that are deluging us
with cheap money. So that we, the plain people,
might well cry out "A curse on both your parties." The currency has been increased about 52
per cent in thirteen years, so that we have already got about 65-cent dollars in purchasing
power as compared to the dollars of 1896. Gold
being the international legal tender, fiat money
has a fictitious value far above its intrinsic worth.
It is getting so plentiful and so cheap to get that
its free coinage ought to be stopped. This I say notwithglanding I have four (4) gold mining claims,
about 80 acres, in Arizona that would be utterly
worthless if it is stopped. They are for sale
cheap for eash, for I think the free coinage of
gold will have to stop soon. Or, if the free coinage
of gold is not stopped, as fast as it is mined
greenbacks and national bank notes should he
retired from circulation. Money is not Wealt h.
am afraid We may get so much of it that we w111
find it is poverty. It is simply the counters wit l,
vhiieli We exchange wealth. We ought, to hale
uxed per capita of circulation so that when
!MID lends his money he can get back"
"
1 .11.‘
hat he lends, plus legitimate interest. No nuwe




no less. And when a man borrows lie can pay
back the exact amount in purchasing power borrowed. Not one cent more nor less, except a fair
interest. Put the per capita circulation on a
sliding scale, moving it up or down, and you are
robbing one class for the benefit of the other,
which is unconstitutional. We might, if our per
capita circulation were not already too high,
stand 14 to / per cent increase each year in our
/
1
2
currency. it is better to have the interest rates
on a sliding scale than the volume of currency
on a sliding scale. High rates of interest would
act as a safety valve and prevent overproduction,
overspeculat ion, etc. instead of elastic currency
We need elastic interest rates such as we have always had and such as the Bank of England, Bank
of France and Bank of Germany have. The increase
about 81 per cent, about $3.00 per
/
2
capita of our currency last year, is just simply
an outrage on the lender. It wiped out his 6 per
cent interest and impaired his principal 21 :, per
cent. Won't money lenders have to raise their
jilt crest rates 50 115 to cover the depl'eeillti011 in
the purchasing power of t heir money? And then
I here is that in
$500,000,000 Aldrich-Vreeland unconstitutional sliding scale elastic emergency currency 111011St rosi I y hill. II may Insist
prices so as.to exhaust the $500,000,000 and then
require clearing house certificates to carry on business. The wrong is so flagrant it certainly cannot
go much further. Even the dullest intellect will
be forced to see the point. According to Frank
G. Carpenter they are digging gold in South
Africa at the rate of $4.00 per second with 50cents-a-day labor, and they propose to bring electricity 600 miles on an aluminum cable as big as
your wrist from the Victoria Falls on the Zambesi river, to install electric lights and power for
working the mines. He says also that the steamer
Saxony, on which be came from Capetown to
England, had on board $5,000,000 of diamonds
and $25,000,000 of gold. If Great Britain has
free coinage she may swamp herself with an
qvcrproduct ion of money and eonsequent high

6
7

prices before we do, although her per capita circulation is at present far below ours. However,
it is presumable she will be too smart for that,
and will keep the most of her gold in bullion. Our
newspapers are in the habit of boasting of our
increased prosperity and to prove it cite statistics
showing our bank deposits and commerce increased
as shown in dollars. This is not a fair index to
the increase in the volume of business. For as we
have about 52 per cent more money and 52 per
cent higher prices, statistics showing that we
have 52 per cent more bank deposits and 52 per
cent more business as expressed in dollars, do
not prove that the volume of business has increased. It merely proves that the value of money
has depreciated so that it requires more money
to do business than we otight to have to c(an.
pete on equal terms with England and other
count ties fl)r the commerce and shipping business
of the world. We cannot have quantity and
quality both. When we gain in quantit y we lose
exactly the SH me proportion in quality, and vice
versa. The much harped on so-called "crime of
1873" did not decrease the amount of money in
existence. Therefore it did not wrong the debtor
class, as falsely claimed. But the tremendous
increase in money in the last thirteen years has
greatly wronged the classes above mentioned. The
average per capita of money in the world is about
$10. ‘Ve now have the $1.00-per-bushel wheat
your adherents in 1896 said they wanted. If we
could make the people see, as 1 do, that by discontinuing the free coinage of gold and resuming
the free coinage of our own silver at 16 to 1, the
present value, i. e., purchasing power of our silver dollars would not be decreased and the value
of our gold dollars would he perhaps doubled,
think they would all vote for a resumption of the
free coinage of our own silver. Our thus demonetized gold would offset England's bullion gold, and
she has no silver to offset, ours, except, perhaps,
sonic ill Canada. So we would
beat, all competition
in the world's market for manufactured goods as
well as for farm products. We would need no




8

protective tariff then. We would need no ship
subsidy then. We certainly do need a prohibitive
(Int y on all foreign silver and uncoined gold. To
fun t her expand our circulation is a clear case of
I rying to make sometLing out, of nothing. It is
as absnrd as trying to raise onrselves by pulling
on our boot straps or seliking to invent perpetual
mot ion. I might say more along this line, but I
doubt if a multiplication of words could make
my position any plainer or stronger. If I am
wrong either in my premises or argument, I would
like to be set right.
Very respectfully,
A. C. LAKE,
A Confederate Veteran Who Voted for You.
RANDOM THOUGHTS.
In 1912 the Republicans ought to stand for a
diselmtinnanee of the free coinage of gold. In 1912
the Democrats might to stand for a discontinuance
of the free coinage of gold and the resumption
of the free coinage of our own silver, at 16 to 1.
As it takes sixteen times as much silver (371.25
grains) to make a silver dollar as it does of gold
(23.22 grains) to make a gold dollar, I don't think
we could inflate our currency so rapidly with our
own silver as wit h gold. Especially as China and
India, with) their 700,000,000 population, would
I ecome again, as of yore, the graveyards of our
surplus i lv cv. These c at mml H's, notably India,
300,000,000 poimlat ion, make it into ornaments.
Itut, if we should find we arc getting too much
silver m(mey, we could stop its free coinage. lly
coming to a silver standard I I hink onr circulat ing
medium woulol be eut in t wo by denmnet izing gold
by driving it to a premium. I don't see how else
we en n reduce our undesirable lnirden of money
without working wreck and ruin to millions of
onr people. As soon as we threatened to come
to a silver standard foreign holders of our no1payable-in-gold bonds and stocks would rush them
over here and sell them and withdraw this surplus gold out of the count ry. Of course, there
wonld ensue a terrible financial cataclysm, the
effects of whieh might be felt for several years,
9

but the ultimate result would be so beneficial as
I,) counterbalance the temporary hardships. A
few years in I lie fife of a nation is but a short
time. Our financial condition has got into such
had shape t hat I think heroic measures are ill
order to restore it to normal. The market value
HOW of the silver in a silver dollar, 371.25 grains,
is about -to cents. I lon't think the gold, 23.22
grains, in a gold dollar ,vould sell for that Dwell
on its own merits. It is hard to make some otherwise intelligent people understand that there is
not a dollar's worth of gold in a gold dollar, and
that it is t he government stamp on it with the
law behind it that makes it a dollar. Assuming,
for example, that there may be only 5 cents'
worth of gold in a roltl dollar and that the government stamp on it with the law behind it adds
95 cents to its value, making it one dollar, why
should ""1 we. the government. ,.et this 95 cents
in't eat! of ghing it to 115, t he gold mine owners,
as heretofore': This bunco game should have
stopped w hen our per capita got to a parity with
England's, $15.00. in 1571 Germany exacted of
ha nee as war ithlemnity 5,000,000.000 francs at
19.3 cents $965,000.000 gohl. Of this amount
120,000,0oo marks at 23.5 cent s--$2,,160,000—are
supposed t o lie in the German %you chest in the
;
Ittlitos tilwer iii t lie fortress of Spaudan, a western
suburb .4 Berlin The hulk of this $96.5,000,0i11)
gold %%
used iii mia v ing off I he cost of the wa
and vsliildishite:- the gold standard of eurrenc
for
re%
",":"1"". • rho great plethora of money
""" iii w dl speculation. Stock companies for
all sorts of enterprises sprunt up like mushrooms.
,
The consequence was a great financial crisis in
hid' lasted till 1576. I read 27) or 30
ago that I 4,11111111V N% Wit injured more by
!,etI lift' this money than France was by losing it.
I think likel) that it was in this way that she.
untoil twat el% for hersel 1. got her per capita of
inc .%
hi $2 t.tni, N%
above En.,:
iaI t hat her prices and cost
, 11g, ha
111.11.1.%
been
illere;1•4eil :1 .4 to seri
li' Iv fat
Ica ihet
cl• •OlictsinColiirei mg wit




I (1

England for commercial supremacy in the markets of the -world and on the high seasj which is
the chief cause of the present somewhat strained
relations between these two countries. Life insurance companies, savings banks and educational
and other institutions, with endowment funds
invested in "good gilt-edge bonds,' so called,
should wire President Taft now and send strong
delegations soon vehemently protesting against
this senseleas suicidal inflation foolishness. The
danger is imminent. Verbum sat sapienti—a word
to the wise is valuable. The currency has been
inflated 4 per cent per annum for thirteen years,
making 52 per cent, and has depreciated in purchasing power 4 per cent per annum for thirteen
years, making 52 per cent. So that the entire
interest on these "good, gilt-edge bonds" has been
wiped out during the last thirteen years. Beaides the market price of bonds has declined so
that really the entire interest on 41 1 per cent
/
bonds has been about wiped out. For $1.50 cash
now is not worth as much as $1.00 cash was
worth thirteen years ago. Whereas, stocks have
not only paid good dividends, but their market
price has advanced about in the same ratio as the
currency has been watered. Superficial people,
especially in Wall street, have not got penetration
enough to know that the value of gold dollars
can depreciate. They think they are the fixed
standard of' value, whereas, their value finetuates
exactly in the same proportion or ratio as their
number is increased or decreased. These people
think it is an indication of prosperity when prices
go up. When really it is because money, by
reason of inflation, is losing its purchasing power
value so that it takes more of the debased stuff
to buy things, that makes prices go up. It, is the
money going down. We Americans have been
reveling in a fool's paradise, thinking that money
is wealth ii ml that there is a dollar's worth of
gold in a gold dollar, overlooking the fact that
even our gold dollars are only "chips" to do business with and that the more "chips" there are
the less they are worth, and that, the unlimited
11

4

•

free coinage of gold continued
indefinitely might
ultimately result in SO weakening
the purchasing
power of our gold standard
dollars that it might
take $100 in gold to buy
an ordinary breakfast.
Spain owed. her rise to silver
. ller fall to too
much silver. We may owe
our downfall to too
much gold if we don't watch
out! Spain first lost
her world trade to the Hanse
atic League, later to
England. Low high purchasing
power Nv a ges with
low cost of living versus
high low purchasing
power wages with high cost
of
and may do us, i. e., the Unite living did Spain
d States. It is not
China and Japan that are
the yellow peril so
inuelt as yellow gold coin.
Rascality often overreaches itself. Did not Engla
nd overreach herself
taking the Boers' gold mines
and may t hey not
prove her financial and
commercial ruin if she is
not careful? I see in a
newspaper dated March
12, 1909, that the
production of these gold mines
for the last twelve month
s, as officially reported
by the mine owners, is
$149,788,950, an increase
of 91A per cent over
previo
is digging gold at the rate us t welve !multi's. This
of about $4.75 per second for every second
of :165 (lays of 24 hours
each. (lreat Britain is
certainly too shrewd to
coin all of this "old junk"
gold into money and
put it into circulation.
In fact, if she coula only
be assured that we
would be fools enoug
v"iu it into money and add it, to our circulh to
ation
here it would be a
on her part to make master stroke of stateera:,.
us a present of emifigh 01
it to raise our prices
so high as to eliminate us
for a long period of time
kets and the high seas. from the world's marDid not we overreach
ourselves taking Panama
from Colombia if the
bottom of the canal or the
bond market should
drop out, whieh it
should unless interest rates are
I ncreased so us to Cover
loNS4 in the purchasing
power of the money,
and it prove a failure? Did
not we overreach
Ourselves takin
overlooking the Japanese factor g the Philippines,
in the calculation,
and had we not better
lie generous and give them
their independence and
let
p;oit I hem? Japan, with Japan protect and exher only $1.15 per cap-




12

Oi

ita of money and consequent low high purchasing
power wages and low prices, can buy our cotton,
manufacture it into goods and sell to them cheaper
than we can. The Memphis Commercial Appeal,
April 22, 1909, page 1, column 3, says the Philippines are costing us $100,000,000 annually. So
it is ourselves being exploited. What benefit are
any of our Spanish possessions, anyway? Cuba's
last little revolution cost us over $6,000,000,
which, I think, we will lase. We did Spain a
big favor when we relieved her of them. If all
the nations of the earth had the same per capita
of money there would be a great uniformity of
prices throughout the world and there would
he but little need for protective tariffs. Sly old
Mother England, with her only $18.00 per capita
of money, can afford to have practically free
trade, but we, with about twice that much and
still rapidly increasing, are forced to continue to
raise higher our tariff walls. Little Switzerland,
with only $17.00 per capita of money, is thus
enabled to buy our cotton, manufacture it into
goods and ship about $10,000,000 worth of them
back to us every year, in spite of our 52 per cent
high tariff wall. This is more cotton goods than
we sell China's 400,000,000 population. We sell
India almost nothing. Having only about one-half
as much money per capita as we have makes
Switzerland's gold money worth about t wiee
much there as our gold money is worth here,
dollar for dollar, 23,22 grains. If it were not for
the fact that our laboring people would suffer
greatly for the lack of work in the meantime, it
would be a good thing if we could have free
trade and buy all of our necessities abroad, so as
to get rid of our glut of gold money. We could
I hen lin ye the full dinner pail. For we could produce things at purchasable prices for foreign nations with less money than we have. They would
then have the purchasing power money and we
would have the commodities to sell them cheaper
than they could make them. Our financial editors
seem alarmed when gold is shipped away from
this country. T am always delighted to see it
13

going away except that it indic
ates
ance of trade is against us. They that the balare alarmed
for the loss of the money. I am
alarmed for the
loss of trade it indicates. Rece
ntly I saw it
stated that the Salt Lake Review
had said: "Gold
is always stable. An ounce of
gold is worth the
same, $20.67, today as it was
ten years ago."
This editor maybe did really belie
He seemingly assumes that it ve what he said.
is
gold dollar that gives it value, the gold in a
that gold per se is of but little while I assume
value and that it
is the government stamp on
it with the law behind it that imparts the value.
Anyway, they
have both, combined into one,
tion, lost one-third of their because of inflapurchasing power
value in thirteen years. This
ques
whether the gold or the stamp give tion as to
s the value is
with some people another form
of the old enigma
as to whether the hen or the egg
came first. The
money mills ought to stop until
the population
can overtake the oversupply of
mone
owners will protest that there is y. Gold mine
90 eents' worth
of gold in a gold dollar and
10 per cent of alloy,
and that other nations will be
glad to- free coin
it for them. Very well,
gentlemen, We are delighted to hear you say so.
Go, sell it for
90 cents. In refusing to
be injured any further by you We would be glad
to know we are not
injuring you. However, we
other nations will take thcir think likely these
refuse to free coin it for you. cur from us and
There is already
plenty of gold money in
the world for all practical purposes for many year
s to come, and we
here in these United States
than is good for us. I thin already have mOre
k we could get along
very well if not a single
dollar more of gold, silver or paper were issued in
100
renewal. We could buckle down years, except in
to work and earn
our money ofT of the ()t
her nations, instead .of
steam shoveling the gold
ground and printing whol and silver out of the
esale the paper mone
on a gold basis at
Washington:1 D. C., which y
is
come easy go ('ii Sy 111011(' V
not good to get somethin and demoralizing. It is
g for nothing. Tie that
14




hateth gifts shall live—Prov. xv: 27. He who will
not take something for nothing will prosper. The
government can make, if we need it, about as
good money for home use out of paper as out of
(Told making it irredeemable legal tender fiat
money. That is about all gold money is except
that it is an international legal tender. If a limit
were put on this paper money it would be infinitely more sane and sound than this unlimite
d
free coinage of gold insanity. This paper money
would not be an international legal tender fiat
money as is gold and would not disturb our foreign trade as does gold. For no matter how high
our prices might go in this paper money, it migh
t
not elevate gold prices beyond the export point,
as do our high gold prices now. For the paper
money if too plentiful would go to a discount
under gold, as (luring and for years after the
Civil War. Here below is an illustration of the
higher prices for farm products that the Bryanites
clamored for in 196: Recently we have been
importing large quantities of potatoes from Grea
t
Britain and Germany and paying 25 cents per
bushel tariff on them. The reason that we can
do this is that Germany, having only about 60 per
cent as much money per capita as we have, her
prices are only about 60 per cent of ours, and
Great Britain having only about one-half as much
money per capita 115 We have, her prices are
only about one-half of ours. And that is why
she is mistress of the seas and the American
flag is a rarity on the ocean. Recently I read in
an English magazine that the average wage of
the common laborer in England for twelve hours
a day work is 1S shillings, about $4.35 a week.
An English cotton buyer here tells me prices are
advancing there and they get 20 shillings now,and
that soldiers get six shillings a week and found.
Not long ago T met, a gentleman from Threadneedle street, London. Ile had on a nice suit of
clothes. T asked him how much it cost made to
order in London. He said $15, and that he
thought likely it, would cost $50 in this country.
I think it would cost here at last $30 to $35, per15

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91



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making them. These two wages of India and
China show the correctness of my assertion t hat
the per capita of money governs prices. For I ndia and China both have the same per capita,
$2.00 in silver, worth, say, 40 cents on tlw dollar
in gold, making 80 cents per capita in gold. This
low per capit a of money for India is the reason
we are now wrapping our cotton bales with comparatively rotten India jute instead of as formerly with the much superior Kentucky and Missouri
hemp. Our hemp industry has been ruined by
our high prices and our cotton and every other
industry will be ruined if we don't stop inflating
our prices by inflating our currency. The netzroes
in Africa are learning how to work and will make
the cotton and the linen industry will be stimulated in Europe and wool growing in Australia,
Argentine and elsewhere. And foodstuffs will be
produced more in other countries. The following
are the approximate per capitas of money of the
different nations, as given under Money in the
Encyclopedia. Americana, published in 1903, in
Chicago and New York:
$11.511
.
$2.00 I)c111110 1k
China
Cuba
Bulgaria

.

India
Servia
.1a pi0
Turkey
Rounutnia
Egypt
Finland
Mexico

2.00 Canada
2.00 (recce

12.00

4.00 I ;erniany

21.00

Belgium
4.00 Spa in

22.5

13.5o
2.00 Switzerland . .. 17.00
:IMO Cape Colony .... 18.00
:3.00 Great Brit a i n ... . 18.00
4.00

5.00
6.00

Port uga1
Aust ralia

23.00
23.50
....... 25.00

(00 Netherlands ..... 25.00
Russia ..
7.50 S. African Rep... 28.00
Hayti
8.00 U. S. $:!s, now.. 35.00
Austria-Hungary
9 00 South ..‘merica . 31.00
Norway
34 00
central America . . 10.00 Siam
38 00
10.50 France
Italy
11.00 Straits Settlenets 48.00
Sweden
Average per ca pit a of money in the world,
about $s.90•




18

Looking at the foregoing list, we see that
Mexico and Russia each have $6.00 per capita.
Therefore their wages and cost of living ought to
be about one-sixth as much as ours. And are
they not? Have we not all heard of the 25-centsper-day so-called "pauper" labor of the peons and
serfs? This 25 cents per day is worth as much
to them as $1.50 to our common laborers. For
other things are likewise in proportion. Egypt,
per capita $4.00, good farm labor 10 cents a day.
Labor so cheap they cannot afford to buy our
high-priced labor saving machines, manufactured
with high priced labor. France, I think, has heretofore prospered in spite of her high per capita
of money because her people are much given to
hoarding, i. e., practically burying their money,
and do not use checks on banks nearly so extensively as we do. Besides, the Bank of France
carries a large gold reserve; dead capital. It is
also worth considering that France may have
earned her money by thrift from other nations
and did not manufacture it out of paper and
cheap gold as we are doing. But even she is beginning to have her troubles, for on April 10,
1909, there was a button-makers' strike at Meru
hecause their wages had been cut :30 per cent
lo compete with Japanese pearl buttons. It could
hardly be an accident that Great Britain and
Cape Colony have the same per capita, $18.00.
There must have been some good, well thoughtlint reason for it. I have recently been reading
some very interesting let tens from Japan by Frank
G. Carpenter. With all his traveling and natural
astuteness, it seems .never to have occurred to
him what relation the prices of a country have
to the per capita of money of that country. Farm
laborers in .1a pan now get 16 cent s a day without
board for men and 10 cents for women, working
front sunrise to sunset, lie says prices there
have advanced greatly within the last few years.
This is quite natural, for Ja pan has copiously watered her currency during these years, with large
borrowings front foreign nations. Mr. Carpenter
says there are 4,000 new factories there. The
19

cotton factories are running night and day, makdiviing from 12 per cent to 50 per cent annual
get 30 cents, the womdends. The men operatives
hours'
en 21 cents and the children 6 cents for ten
work. The men get good meals, consisting of
2
/
rice, fish and vegetables, for 2% cents each-71
The shipbuilding yards and navcents per (lien).
igation companies are making about 12 per cent
comper annum dividends. The banks and stock
per cent to 12 per cent, and more. The
panies 8
savings banks pay the depositors 4.8 per cent
interest, compounded semi-annually. Oh! if we
Japan,
wily had as small a per capita of money as
prosper. We could be humanihow we would
tarians and profit at the same time, and put cotton shirts on the backs of all the poor peoples of
our
the world without skinning 'em alive with
those of • any
outrageous prices—higher than
other nation of the world. We would have such
raise
high power money that we could profit ably
pound, corn at minus
vol ton at, minus 5 cents a
a
25 cents a bushel and NOWA at minus 50 cents
bushel, and horses, mules, meat, land, wages and
everything else would be in proportion. As it is,
We are a nat ion of selfish, greedy cormorant robloses
bers, piling up money that spoils (i. P.
power) on our hands, as did the
purchasing
Wilmanna (Exodus xvi) of the Israelites in the
they got, greedy and gathered mon.
derness, when
I
than They needed for their immediate wants.
Oil Company is buildsun told that the Standard
to a
ing 31 railroad from La Paz, Bolivia, out
low grade, easily
solid mountain of gold of
worked, free milling gold ore. Maybe a steam
0siti"• Are we to aemmshovel ePinhling III111)
modatingly free coin this gold mountain for them
pmver
and thereby furl her weaken the purchasing high
prices go sky
of our money, so as to make
of
and thereby rob all of our thrifty people
cash savings, accumnlat(91 by years of toil
their
anything
and sweat and self-denial? If there were
gained by so doing there might be
whatever to be
excuse for doing so. Our go\ ernment ought
money.
to get at least ori-lialf for eoining it into




20

There are said to be over $15,000,000,000 On deposit in the banks and trust companies of the
United States. All of this money in thirteen
years has lost about one-third of its purchasing
power, because of inflation, making about $5,000,000,000 lost. This is a loss of about one and a
half billions of dollars more than all the money
in the United States. Then there is the one-third
loss on untold billions of bonds, mortgages, notes
and life insurance policies. So I think it is safe
to say that our people have lost in thirteen years
several times over the total amount of money
there is in these United States. Just think of
it! Isn't it awful? Then there are the authorized several hundred millions of Panama bonds
which when sold are to be used as a, basis for
still further watering the currency with national
Imnk notes. This basing the currency on at debt
is queer financing anyway. There should be no
more bonds sold on which currency can be issued.
On December 1, 1909, there is already outstanding
$707,43:1,547 of this national bank currency and
$316,(isl,016 of legal tender greenback fiat money,
which is better money than the nati(mal bank
notes, Nvhich are not legal tender fiat money.
Besides, gold can be withdra wn from the treasury
with these greenbacks; also the national banks
hold them as their legal reserve, for
Bat ional bank notes.cannot be used.
Also there are
said to be immense, inexhaustible amounts of gold
in Alaska, so that Alaska is an injury instead of'
a benefit to us. We have been patting ourselves
on the back for years over cheating Russia by
buying Alaska from her for $7,200,000. If we
had left Alaska to Russia she with her low capita
of money and low prices could have caught the
salmon and seals cheaper for its and mined the
coal, copper, etc., and sold it, to us a great deal
cheaper than we can ourselves. Besides, it looks
like the trusts alight rob us of everything in
Alaska anyway. Also, we could have bought the
Philippine timber cheaper under Spanish rule
there than we ell 11 under our own rule, for we
have put up prices there too. Why not have I he
21

•

free coinage of aluminum and be done with it?
This aluminum money would go at a discount
under gold and consequently would not so disastrously affect our foreign COD) uereial relations
as does the free coinage of gold and the issuance
of paper money on a gold basis, with the present
international agreement making 23.2:2 grain gold
dollars the international legal tender hat money.
It would make no difference in our dealings with
foreign nations how high prices might go here at
home in this aluminum money. The height of
prices would be governed entirely by the amount
of this aluminum money put into circulation by
the government. And free printed paper money
would he just as worthless and a little cheaper to
make and more convenient to carry. The low
114.1 capita'of money in Cuba, with consequent low
prices there, is, I think, the reason they can raise
sugar there so ninch cheaper than we can here.
Then there is that cheap no-duty Philippine sugar
and tobacco coming in to ruin our cane and beet
sugar industries and tobacco raisers. There must
he very little money there, for the native Filipino
schotd teachers wider American supervision gel
an average of only $9 a month stipentl. .Toseph
Vrench Johnson, professor of political economy at
the University of New York City, who has published a book, "Money and Currency," says: "It
took $3,623 last year to pay for the necessaries
of living that cold(' tie In'might for $2,500 in 1 till
Sixty-nine cents ten years ago had the buying
So he, figuring
power of the dollar of today."
on the cost of commodities and I figuring on the
increase of the currency, have reached the same
conclusion. I lis estimate of 69 cents is for ten
years, while my estimate of 65 cents is for thirteen years. And each proves the correct fleSS of
the other. Thus we see that my assertion that
add 1 per cent to the currency and you depreciate
its purchasing power 1 per cent, double the currency and you cut its purchasing power one-half,
is a condition and not a theory. An4I the evil
na glit to be remedied at once bv stopping the free
.
coinage (4' gold and bv stoppile. the issuance of




22

any more national bank notes or legal tender
greenback hat money or Aldrich-Vreeland money,
or any other kind of money. We need less money
in order to have better money. It seems that
Messrs. Aldrich and Vreeland want a central bank
with power to expand or contract the currency.
This would be a very dangerous machine if it
should happen to fall into the hands of unprincipled predatory men, which it is very likely to
do. They could elevate or depress prices at will
by putting the currency on a sliding scale, which,
I think, is unconstitutional, working it up and
down, pump like, and suction all the money out
of the people of the United States. There is
enough of that kind of thing going on .already,
and we don't want any more machinery to help
it along. And if congress does pass any such law
I hope President Taft will veto it, as did "Old
liekory" Andrew Jackson veto in 1832 the
United States Bank. All the currency reform
we need is to stop watering it so copiously. And
the United States treasury is a good enough central bank. For years past people who have been
putting their bard-earned savings into life insurance pfilicies, "good, gilt-edge bonds" and savings banks have thought themselves almost as
safe as if they had put their faith in the Rock
of Ages. But they have hewn building their
houses on the shifting sands. They have been
put ting their watered money into letilzing barrel-2.
As they poured in at the top it has run out at
the bottom. Our government ought to charge
as toll for coining inti) money, say, 50 per cent
of all the gold (or gold and silver) received at, the
mint. In this way a fund might be created with
\\liich to redeem about $751,000,000 of outstanding 2 per cent bonds on \Odell are based a
circulation of about $650,000,000 (on a like
amount of bonds) of national bank notes and
also redeem the $346,681.016 of legal tender
greenback flat money for the redempt ion of which
$150,000,000 gold is required by law to always
be held in reserve at Washington, D. C., so that
we mild become again as in 1835, a nation wit li21

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4.

are springing up in India that are not only supplying the Indian trade, but are also shipping
goods to China, and t hat factories are also starting up in China, and he suggests that the Chinese
open door is more likely to swing outward than
inward. I think this is the reason they are now
having such hard times in England. Commander
Wm. Booth of the Salvation Army reports November 17, 1909, hundreds of thousands out of
work and their families starving in London and
millions suffering for lack of employment throughout (;reat Britain. I suspect also that these
factories are being promoted. by English capital,
just as 1 suggested in my letter to Mr. Bryan, our
factories would have to move to China, Japan and
oilier countries where money is scarcer and necessarily wqrth more than here and wages and living cheaper and the cost of production a great
deal less than here. The $2.00 per capita of China
and India must be in silver, equivalent, say, to 40
(pills On the (bdlar in gold, which .would make the
per capit as so cents in gold. As if in contirmaii)11 or Mr. Frewen's prediction that the Chinese
open door would swing out ward, I see in the Pittslairg Chronicle Telegraph of September 24, 1909,
page 6, column 2, an editorial, "China as m Purveyor," saying: "(111 July 30 last the British
Provision trade experienced a severe shock from
the arrival at London of a Chinese steatnship
Iii tell with provisions consibting of wild fowl,
snipe, pheasants, deer, hares, hogs, chickens, domestic ducks, geese and eggs, this being the
lirst cargo of the kind received from the Celestial
empire, which were offered at very low figures
and found a ready market. That China's surplus
()I food supplies is vast, prices low, etc." Frank
carpenter says there is an industrial school at
:l'ient sin that pays the boys 10 cents a day, which
is enough to pay for their board and clothes, and
11111 t here are hoarding schools in Peking with
I uition and board at $3.00 a month. This 10 cents
a day or $3.00 a month must lie in silver aiiil
amounts I() only about 4 vents a day, or $1.20 a
iiiiiiii h in gold standard money. 1;,,ld miners




26

wages in Korea is 25 cents a day. Here about
$3.00 and up for eight lion is' work. The total
production of gold from 1492 to 1907, inclusive,
416 years, was about $12,500,000,000, nearly all
NVII1C11 is still in existence.
The production or
the world in 1s96 was about $202,251,600, in
1907 $404,000,000, in 190S $434,000,000, in
1909 $450,000,000 and increasing every year
4111(1 raising prices throughout the world. Another
way in which these 2 per cent government bonds
with which the currency is watered might be retired would be to offer the holders of them in
exchange gold bonds bearing 3 per cent, 31 2 per
/
cent or 4 per cent interest on which no currency
could be issued. When I say cheap money I mean
money of low purchasing power. The newspapers
by cheap money mean money at a low rate of
interest. Our prices are so high that our imports
are increasing, exports decreasing, which, of
course, increases the government revenue, but at
the expense of the country. Dig gold and it will
leave us. Stop digging it and it will come back
ii ml stay with us, and be worth more to us. I
don't like the idea of shill subsidy, but realizing.
that we have just got to do something to get
auxiliaries for our navy, I would suggest that (air
government own ()aright. a merchant marine,
manned entirely by white Americans, so as to
make the service honorable, to be used (luring
wars as naval auxiliaries. Our Southern congressmen might he induced to vote for such a,
bill. I think the navies of Russia, (lermany,
France and japan have no -foreigners aboard. Not
many years ago the Ameriean Oceanic line plying
bet. ween San Francisco and Australia, paying sailors $40 TNT month, was forced out of business by
Japanese and other vessels paying sailors only
$s per month. Soldiers in China get 12 cents
silver a day, which is about, 5 cents in gold. Men
reeling silk from the. cocoons 10 cents to 12 cents
in silver working from daylight to dark. What
good can the Chinese open door do us? All this
twaddle about it , a silly farce, so far as our
i
,tplhing I hem is (.01)(1.111(4i.
niir robber prices boy-

cott us. The salary of “en. Oyama, the commander-in-chief of the Japanese army, is only
$3,000 a year, but when we consider its purchasing power in ,Japan, that is an immense sum.
.--ifhe trusts may think it to their interest to inhate the currency so as to have such high prices
('
as to necessitate high tariff to keep out foreign
goods. Senator Aldrich is for high tariff. The
Aldrich-Vreeland $500,000,000 entergency currency
is an inflation •measure. On the tobacco plantations in Java men get 10 to 16 cents a day,
women 6 to 12 cents, children 4 to 6 cents, working from 7 a. in. to 5 p. m.
There are more hogs in China than in Europe.
I see in October, 1909, Consular Reports, page 117,
that pork sells in China at 4 cents a pound, eggs
/
at, 31 cents a dozen and quail at 2 cents each. If
these prices are in silver, which I think they are,
40 per cent of these amounts would be the prices
in our gold standard money. On December 10,
1909, United States Comptroller of the Currency
Lawrence 0. Murray reports "25,000,000 people
have bank deposits, amounting to $14,425,523,167)." Add to this the money not in the banks
and we have perhaps considerably over $15,
000,
01H1,000, about one-third of which has been lost in
1 'driven years because of inflation. He reports
savings bank deposits at $5,678,735,379 deposited
by 14,894,696 people. Total number of banks in
the United States, fibout, 25,000, of which about
7,000 are national banks. Newspapers are constantly blaming the trusts and the tariff for high
priees. This is enly half a truth, which, however,
misleads the unthinking multitude. Our inflated
currency is the first root cause of high prices,
NVilkil makes a high protective tariff absolutely
necessary to shut, out foreign competition. Tariff
added to our already high inflated currency prices
is only the secondary cause of high prices. The
tariff, of course, gives the trusts a chance to rob
its from behind the high tariff wall. However, if
here were no tariff at all I think there would be
worldwide trnsts. l'ossildv by systematic methoils and the eliminal ion of waste our trusts make

--4a




28

big profits and still sell us cheaper than we could
otherwise buy. We buy of South America about
three times as much as we sell there, and of the
Philippines we buy about twice as much as we
sell them. As long as our high inflated currency
prices bar its from the Latin-American markets
we may confidently depend upon (lreat Britain
to back us up in the Monroe doctrine. For she
has nothing NVIlat ever to fear from our competition there, but she has everything to fear front
t;ermany and other countries. I think if we should
undersell her there we will have to abandon our
Monroe doctrine. They are getting our gold via
Latin-America 011(1 are satisfied. I see in the
Literary Digest of December 25, 1909, page 1195,
that prices for commodities on December 1, 1909,
were 60 per cent higher than on • July 1, 1896,
when they reached their lowest point. It took me
60 years of life, experience, travel and reading a nd
I hree years of special observation, reflection and
putting facts together to gain the knowledge 14)
write the foregoing article. 11 is entirely original
wit h me, a plain old fogy has)k keeper, for I have
never read any works on political economy, but I
think it, is good, commen sense, sound, logical, etiIt is as
sen Iin II y correct and incontrovertible.
clear to my mind as that two plus two equal four.
A. C. LAKE,
St., Memphis, Tenn.
28 North Front
Originator of the charge 50 per cent toll for coinage idea. It will curtail the overproduction
of g(.141 and help pay 1he government's expenses.
Inflated currency is the sole first cause of our
high prices, and inflation ought to stop at onee.
Q. E. D.
Last year Japan sold us almost one and a half
tunes as much as she did to the whole of Europe. She bought of Europe nearly two and a
third limes as much as she did I If its. Our sales
to her were mostly raw cotton iind petroleum.
Europe's sales to her were manufactured goods.
Memphis, Tenn., January s, 1909.
Pp% ised to .li11111/1EV S, 19111.
29

1
1
titan fur
Trutt-al National Bank
of Amur

BY SAMUEL ADAMS TRUFANT
Cashier Citizens Bank of Louisiana, New Orleans

I







Plan for
Central National Bank of Issue
HE proposed monetary legislation which is likely to
grow out of the recommendation of the National
Monetary Commission, ought to provide for amendments to the National Banking Act, the operation of which
would be so favorable to the .banks chartered under the
National banking law that all the state banks of check and
deposit would shortly be led to give up their charters, and
qualify under the amended National Banking Act. We
ought to have in this country but one banking system for
banks of check and deposit, and by so amending the National Banking Act as to provide for the capital of a Central Rank of issue and discount, I think that object can be
accomplished. Safe deposits, savings banks and trust companies should be left to operate under their state banking

T

laws
I would suggest that the National Banhing Act be so
amended as to require each ibank chartered under the Ngtional Banking Act to subscribe for the stock of the Central
Pank of issue and discount, 33 1-3 per cent. of their capital
and surplus; that the capital of the Central Bank should
not be limited to aly specific amount, but may be increased
or decreased according to the number of banks qualifying
tinder the National Banking Act, and that the entire capital
of the Central Bank, represented by 33 1-3 per cent. of the
entire capital and surplus of the National banks, should be
Invested in gold and held in reserve against the authorized
issue of the notes of the bank, which should, in my opinion,
only be limited to an amount equal to the entire capital

the
lot of the National banks, and further provide that
committee of manoperation of the bank should rest in a
a,gement, composed of a manager and four assistant managers, the manager to be appointed by the President of the
United States, but to qualify only upon being confirmed or
elected by a majority of the twenty-one directors.
The four assistant managers should be nominated, one
each respectively by the Secretary of the Treasury, the Di
rector of the Mint, the Treasurer of the United States, and
the Assistant Treasurer at New York, and to qualify only
when confirmed by a majority of the votes of the twenty.
one directors. I would suggest that these officers be eleet•
ed for life or good behavior, under certain age or physical

and surplus presented by the National 'banks. The Central Bank should not issue notes of denominations smaller
than $5.
I would suggest that the stock of the ,Central Bank held
by the National banks as provided above, should be nontransferrable, but remain the property of the bank to
whom It is issued and counted as part of their legal reserve
to that extent or amount.
To Do Business With National Banks Only.
The 'Central Bank should be permitted to re-discount
only for National banks up to their full capital and surplus to receive deposits only of National banks on which
the rate should be fixed at 2 per cent, on daily balances.
I cannot see that it is necessary--at least in the beginning—to in any way disturt the present workings of the
IT. S. Treasury or the present method of bond-secured National bank note issue. In fact., I think it is necessary to
propose as few radical changes as 'possible in the initiation
of this important monetary departure. It will be several
years at least—possibly five—before the Central Bank,
working under this proposed charter, or for that matter.
under any proposed charter, can satisfy the masses of the
peopile that it is not monopolistic, and is not subject to thb
control of any political party or any icombination of financial interests of any one particular section. To popularize
the granting of the charter to such a corporation, it would
be necessary to guard against just these misgivings on the
part of the great mas:.es of the people, and this is the rock
upon which I have :putt; how to provide for the board of
d'rectors.
The Government, of course, must have recognition.
Create a board of twenty-five directors to include ex-officio
the Secretary of the Treasury, the Treasurer of the United
States, the Director of the Mint, and the Assistant Treasurer of the United States stationed at New York, where the
headquarters of the bank should unquestionably be, and
provide for the election of twenty one directors by the bal-




4

disability restrictions.
Payment of Dividends.
The charter should provide that the bank may declare
semi-annual dividends not exceeding 5 per cent, per annum
All dividend checks to be payable to the Comptroller of the
Currency for account of the bank in whose favor it has
been drawn only upon certificate of the Central Bank that
all claims for services rendered, assessments or losses
growing out of re-discounts have been fully and satisfac,
torily adjusted. All profits in excess of 5 per cent, per an.
num cumulative to be divided equally 'between the bank

ti

and the general Government.
It sPems to me that it might be well to liaAe sunlit pfuision to restrict the votes of the stock-holding banks for di•
rectors to those who either have served or at the present
time are serving as president f the 'clearing house in some
of the largest cities, to be designated in the chanter.
The manager of the Central Bank should receive a salary
of thirty-five thousand dollars a year, and the four assistant managers should receive a salary of twenty thousand
dollars a year. The twent3-one directors should be requir:bd
to meet at least four times a year, and they should be allowed a compensation of five hundred dollars pitch meet.
mg, anti traveling expenses.
5

raising or lowering the rate of discount, so as to expand or
contract to meet the trade requirements with elasticity.

Capitalization of the Central Bank.
Assuming the capital and surplus of the National banks
now incorporated amount to about $1,350,000,000, and the
capital and surplus of the state banks, operating as banks
of cheek and deposit, amount to $750,000,000, 33 1-3 of that
capitalization would be approximately $666,000,000 of gold,
which would form the capital of the Central Bank, if all
the state banks surrendered their charters and qualified um
der the amended National banking laws.
I regard the elastic feature as very important, for it provides that every bank of check and deposit should be
forced to carry 33 1-3 per cent. of its capital and surplus in
gold coin which is deposited with the Central Bank, but
the note-issuing power is vested only in the Central Bank.
There is no question but that if every bank In the United
States carried a gold reserve equal to 33 1-3 per cent. of an
authorized issue of bank notes, that that provision of i+seif
would be a sufficient safeguard, but the great trouble then
would be to establish the certainty that each bank had in
its vaults in gold the necessary 33 1-3 per cent, of its noe
issue. Penalizing the bank for violation of this law even
to the extent of taking Its charter away, would be a poor
consolation for the mischief which might be created by a
laxity of imprudent bankers.

Savings Trust Departments.
No National bank should be permitted to operate a savings or trust department. Savings banks, safe deposit
banks and trust company features should be divorced from
the National banks. However, it would be wise for the
state laws governing the trust companies, safe deposit and
savings banks to restrict the operations of such institutions, so as to further safeguard these trust funds and draw
a more distinct and well defined line between the business
of investment and homestead companies, and the deposi.;:s
of savings and trust banks.
The Central Bank should rediscount commercial paper
which has not exceeding ninety days to run, or at the outside not more than four months, for National banks only
at a rate not to exceed 6 per cent., but no loans should be
made on paper secured by bank stock or real estate mortgages, but further loans to National banks should be made
en call or demand., secured by state, municipal or other
bonds, such as may be classed as safe investments for savings banks or by authority of the board of drectors for 90
per cent. of their market value, not exceeding par of such
bonds. The Central Bank should be pmhibited from tran3acting business of any nature whatsoever, except with National banks. No Government funds should be deposited
in the Central Bank.
The most important thing is to get the great mass of the
people to understand that the Central Bank is not intended
to operate as a money-making institution, but to emit a
stable and elastic currency to facilitate the National banks
in 'providing a circulating medium which will at all times
respond to the requirements of the country.
The stock held by the National banks In the Central
Bank should be assessable for any deficiency in the earnings, because under normal conditions the Bank is not likely to do a profitable business, and that is why I have Jug7

The Government having igiven power to the Central Bank
IA) emit paper payable on demand, it must make certain

that the reserve is always held inviolate, and the Government must further accept the notes of the Central Bank for
any and all obligations except custom duties.
Our gold reserves are too light under the present system,
but with the gold reserve always in the vaults of the Central Bank, equal to 33 1-3 per cent. of the combined capital
and surplus of all the banks now incorporated or to he
hereafter inexmporated under the National Banking Act, we
shall have established a basis for a circula,ing medium
%%Mich will be absolutely safe, and the issue r(gulated by




a

gested that the stock should be entitled to a cumulative
dividend of 5 per cent.
The term of twenty-one directors should be by allotment, to be fixed so that seven directors would retire after
serving three years, seven after serving four years, and
seven after serving five years. The chairman of the board
should be elected by the twenty-one directors, and he
should be ex-officio of the finance or executive committtee.
There should be special compensation provided for committee meetings, and special meetings of the board should
be called by the executive committee or 'by the manager
upon application of any seven members of the board.
I .would suggest a provision requiring the Government's
pro-rata of net earnings of the Central Bank, say 50 per
cent. of the net earnings after providing for dividend at 5
1,er cent, per annum, cumulative, to be used to retire the
Present oustanding legal tender notes, and the bank should
distribute its surplus fund, if any, in special dividends to
the stockholding banks yearly.
The rate of discount should be .fixed by the committee of
management on Saturday of each week, after the close of
business, and the bank should be required to publish a
statement of its affairs including rate fixed for discount
on Saturday evening or Sunday morning.
Later on, it may be necessary to amend the act to create
the Central Bank, so as to provide for branch 'banks in Chicago, !St. Louis, New Orleans and San torancisco. It. may
also be inecessao to arrange for the Central Bank superseding the !Sub-Treasury in its service to the Government,
but I do not see any necessity for any branch banks at the
present time.
The note issue of the Central Bank should of course be
exempt from taxation and the income should also be exempted from the 'special excise tax. To obtain exemption
from state and municipal taxation for the capital it may be
necessary to locate the Central Bank in Washington.
(Rvpriiiteol frill,' THE FIN.1NCIEli. New




Nuvo.mht.t. s, 1909.)

distributed form of wealth is sqnply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically .and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a' natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values at an arbitrary valuation—by tile certificate process on
application of the owner- at cost of issue—we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read -THE DISTURBING FACTOR IN HUMAN AFFAIRS
,"
By James D. Holden. Sent post-paid for 25c. Address
tary Land Currency League. 281 Kittredge Bldg. Denver. SecreColo,




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
"WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?'

I. Should it be "paid into circulation" for
public improvements, for ex tinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It wili not be denied that in the
the true method of issue depends upon last analysis
what money
IS.
We do not answer the question
money?" by replying, "it is a creation —"what is
of law."
This answer only explains how it is
brou7.
-ht into
existence. Nor do we define its chara
ing, "it is a medium of exchange." cter by sayThis reply
simply defines one of its three functions.
In fact,
money acts as a medium of exchange in
a secondary
capacity.
What then is money?
In common parlance, it is "a representa
tive of
wealth." If to this popular definition
we prefix
the compound word "legal-tender,"
comprehensive definition indicating we have a
character—that of an authenticated its primary
debt-paying
device. Concisely and generically defin
ed, money
is "a legal-tender representative of
wealth."
For the reason that it is an artificial repre
sentative of wealth, money should be issue
d by the state
as such. It should be issued to wealt
h-owners, on
application, for the reason that none but
wealthowners can be entitled to a wealth repre
sentative.
They alone have earned the right to
demand such
a symbol from the state for comm
ercial uses.
Hence a scientific issue of legal mone
y cannot be
disassociated from individual wealth. All
existing
money was issued in accordance with this
principle.
The state, it is true, has the power
to create
and issue legal money without reference
to property; but its power to do, and its duty is
the premises,
are essentially different propositions.
Obviously
there is no relationship between the
power of the
state to create money, and the act of disbu
rsing it.
They are separate and distinct functions,
or duties.
It by no means follows that, because the
state can




create bona tide money at will, it may arbitrarily
use what it creates
dieharging its obligations.
Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obv iously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.
The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money 'should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products- or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state -coniplying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into exist6nce in quantity sufficient to engage
our full powers of production, it is clear that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth ia simply one of expediency, safety and economy.
Because a currency repre,entative is essential
to the welfare of the producer. his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values -at an arbitrary valuation—by the certificate process -on
application of the owner--at cost of issue—we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read -THE DISTURBING FACTOR IN HUMAN AFFAIRS."
By James D. Holden. Sent post-paid for 25c. Address Secretary Land Currency League. 231 Kittredge Bldg. Denver. Colo,




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
'WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF'
MONEY BY THE STATE?'

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last analysis
the true method of issue depends upon what money
IS.

create bona fide rrio•ey at will, it may arbitrarily
use what it creates ;n discharging its obligations.

We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is bronght into
existence. Nor do we define its charact r by say,
ing, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender," we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, monoy should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property: but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can

Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.




The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain-- head -the state --complying with, necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production. it is clear that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth :u simply one of exped
iency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to deman
d
and receive it on application should be recogn
ized
by the state, because, in complex society, his
needs
cannot be otherwise logically and scientifically
supplied.

SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued
by the
state otherwise than as a representative curre
ncy?
How can the interests of the producer be adequa
tely protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values--at an arbitrary valuation—by the certificate process on
application of the owner—at cost of issue—we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read -THE DISTURBING FACTOR IN HUMA
By James D. Holden. Sent post-paid for 25e. N AFFAIRS."
tary Land Currency League. 2:11 Kittredge Bldg. Address SecreDenver. Colo.




Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land

Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
"WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?"

I. Should it he "paid into circulation" f,ir
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last inalysis
the true method of issue depends upon what money
IS.
We do not answer the question —"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, 'Sit is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender." we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can




create bona fide money at will, it may arbitrarily
use what it creates in discharging its obligations.
Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.
The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual - - those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is clear that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth id simply one of expediency, safety and economy.
Because a currency repreentative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values - at an arbitrary valuation—by the certificate process--on
application of the owner—at coht of issue— we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. RICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read -THE DISTURBING FACTOR IN HUMAN AFFAIRS,"
By James D. Holden. Sent post-paid for 25c. Address Secretary Land Currency League, 231 Kittredge Bldg. Denver. Colo,




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
"WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?'

I. Should it be "paid into circulation" for
public improvcrnents, fnr extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last analysis
the true method of issue depends upon what money
IS.
We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, 'it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth.'
If to this popular definition we prefix
the compound word "legal-tender," we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the i?eason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can




create bona fide mom .v at will, it may arbitrarily
use what it creates i!, discharging its obligations.
Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.
The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in excharge for products—or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head—the stPte complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is clear that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth i4 simply one of expediency, safety and economy.

SCIENTIFIC MONEY.

Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.

Supplemental Communication No. 5.

Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:

In conclusion, we most respectfully suggest that
in the proposal to monetize land values -at an nrbitrary valuation—by the certificate process on
applictItion of the owner-- at cost of issue----we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read -THE DISTURBING FACTOR IN HUMAN AFFAIRS,"
By James D. Holden. Sent post-paid for 25c. Address Secretary Land Currency League, 231 Kittredge Bldg. Denver. Colo.




The Land Currency League
to

In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer.,
at this time, is:
'WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF'
MONEY BY THE STATE?"

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last analysis
the true method of issue depends upon what money'
IS.
We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This , reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender," we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot he
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can




create bona fide rnotie, at will, it may arbitrarily
use what it creates in discharging its obligations.
Since money is a necessity to the individual, it
is evident that a system of issue. cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obv iously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.
The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should he at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual- those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state -complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. . And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is clear that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is oimply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values---at an arbitrary valuation—by the certificate process----on
application of the owner—at cost of issue—we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read THE DISTURBING FACTOR IN HUMAN AFFAIRS."
By James D. Holden. Sent post-paid for 215c. Address Secretary Land Currency League. 231 Kittredge Bldg. Denver. Colo.




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
'WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?'
I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government!

n: Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It wiil not be denied that in the last analysis
the true method of issue depends upon what money
IS.

create bona fide me .ey at will, it may arbitrarily
use what it creates in discharging its obligations.

We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
e4istence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender," we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially ditTerent propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that. because the state can

Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.




The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state —complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production. it is clear that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume: and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values-- at an arbitrary valuation—by the certificate process on
application of the owner—at cost of issue—we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of'scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read -THE DISTURBING FACTOR IN HUMAN AFFAIRS,"
By James 1). Holden. Sent post-paid for 25c. Address Secretary Land Currency League, 231 Kittredge Bldg. Denver. Colo,




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members Of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
"WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?"

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government!
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last analysis
the true method of issue depends upon what money
I S.

create bona fide money at will, it may arbitrarily
use what it creates in discharging its obligations.

We do not answer the question —"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance„ is "a representative of
it
wealth." If to this popular definition we prefix
the compound word "legal-tender," we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."

Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.

For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can




The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If • for any
reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain head—the state—complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under Ow
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is cicar that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values- -at an arbitrary valuation—by the certificate process on
application of the owner—at cost of issue—we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read “THE DISTURBING FACTOR IN HUMAN AFFAIRS,"
By James D. Holden. Sent post-paid for 25c. Address Secretary Land Currency League. 251 Kittredge Bldg. Denver. Colo,




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer.,
at this time, is:
'WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?"

T. Should it he "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not, be denied that in the last analysis
the true method of issue depends upon what money
IS.
We do not answer the questiorr.--"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender," we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can




create bona fide mo!.ey at will, it may arbitrarily
use what it creates in discharging its obligations.
Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obv iously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.
The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products- -or free from
the exactions of the individual--those to whom it is
a necessity should be able to obtain it, from the
fountain—head—the state complying with necesary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is clear that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth Ili simply one of expediency, safety and economy.

SCIENTIFIC MONEY.

Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.

Supplemental Communication No. 5.

Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:

In conclusion, we most respectfully suggest that
in the proposal to monetize land values--at an arbitrary valuation— by the certificate process --on
application of the owner---at cost of issue—we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read "THE DISTURBING FACTOR IN HUMAN AFFAIRS."
By James D. Holden. Sent post-paid for 25c. Address Secretary Land Currency League, 211 Kittredge Bldg. Denver. C,olo,




The Land Currency League
to

In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
'WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?'
,

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last analysis
the true method of issue depends upon what money
IS.

create bona tide money at will, it may arbitrarily
use what it creates in discharging its obligations.

We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender." we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."

Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.

For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth Kepresentative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can




The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products - - or free from
the exactions of the individual— those to whom it is
a necessity should be able to obtain it., from the
fountain—head—the state complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is cicar that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth na simply one of expediency, safety and economy.

SCIENTIFIC MONEY.

Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.

Supplemental Communication No. 5.

Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:

In conclusion, we most respectfully suggest that
in the proposal to monetize land values at an arbitrary valuation—by the certificate process---on
application of the owner --at cost of issue— we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read THE DISTURBING FACTOR IN HUMAN AFFAIRS,"
By James D. Holden. Sent post-paid for 25c. Address Secretary Land Currency League, 231 Kittredge Bldg. Denver. Colo,




The Land Currency League
to

In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
"WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATF?"

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

•
It will not be denied that in the last analysis
the true method of issue depends upon what money
IS.
We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender." we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the rea:on that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state far commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and is§ue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
'state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can



create bona fide money at will, it may arbitrarily
use what it creates in discharging its obligations.
Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates tho two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.
The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in excharge for products—or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state complying with necessary regulations.
Nothing is more certain than 1 hat our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is clear that, no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.

SCIENTIFIC MONEY.

Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.

Supplemental Communication No. 5.

Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:

In conclusion, we most respectfully suggest that
in the proposal to monetize land values- at an arbitrary valuation—by the certificate process---on
application of the owner --at cost of issue—we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. RICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read -THE DISTURBING FACTOR IN HUMAN AFFAIRS,"
By James D. Holden. Sent post-paid for 25e. Address Secretary Land Currency League, 231 Kittredge Bldg. Denver. Colo,




The Land Currency League
to

In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
'WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?'

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It wiil not be denied that in the last anal:sis
the true method of issue depends upon what money
IS.

create bona fide money at will, it may arbitrarily
use what it creates in discharging its obligations.

We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender." we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."

Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.

For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot he
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can




The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is clear thnt no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent iind widely

distributed form of wealth is simply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
,
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values--at an arbitrary valuation—by the certificate process—on
application of the owner—at cost of issue—we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read -THE DISTURBING FACTOR IN HUMAN AFFAIRS,"
By James D. Holden. Sent post-paid for 25c. Address Secretary Land Currency League. 231 Kittredge Bldg. Denver. Colo,




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
"WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?"
I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?

II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last analysis
the true method of issue depends upon what money
IS.
We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender," we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason thtZt it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for t.he reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or Uuties.
It by no means follows that, because the state can




create bona fide money at will, it may arbitrarily
use what it creates in discharging its obligations.
Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obv iously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.
The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual---those to whom it is
a necessity should be able to obtain it from the
fountain -head--the state- complying with necessary regulations.
Nothing is more certain than that our financial
ills are aue to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is clear that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth id simply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values at an arbitrary valuation—by the certificate process -on
application of the owner— at cost of issue—we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOI,FE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read "THE DISTURBING FACTOR IN HUMAN AFFAIRS."
By James I). Holden. Sent post-paid for 25c. Address Secretary Land Currency League, 231 Kittredge Bldg. Denver. Colo,




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Robit. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
"WHAT PRINCIPLE SHOULD GOVERN THE ISSUE oF
MONEY BY THE STATE?"

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last analysis
the true method of issue depends upon what money
IS.
We do not answer the question —"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender." we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can




create bona fide money at will, it may arbitrarily
use what it creates in discharging its obligations.
Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.
The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot he readily obtained in
the market in exchange for products—or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state--complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in-quantity sufficient to engage
our full powers of production, it is cicar that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.

SCIENTIFIC MONEY.

Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.

Supplemental Communication No. 5.

Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:

In conclusion, we most respectfully suggest that
in the proposal to monetize land values- - at an arbitrary valuation—by the certificate process—on
application of the owner--at cost of issue—we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read THE DISTURBING FACTOR IN HUMAN AFFAIRS;
By James D. Holden. Sent post-paid for 25e. Address Secretary Land Currency League. 231 Kittredge Bldg. Denver. Colo,




The Land Currency League
to

In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
"WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?"

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

it will not be denied that in the last analysis
the true method of issue depends upon what money
IS.
We do not answer the question— "what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender." we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can




create bonatfide money at will, it may arbitrarily
use what it creates in discharging its obligations.
Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. 013N. iously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.
The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual— those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state- complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is cicar that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Sini e money commands individual wealth in
c
market--how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In eonelusion, we most respectfully suggest that
in the proposal to monetize land values---at an arbitrary valuation—by the certificate process --on
application of the owner—at cost of issue--we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. RICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read -THE DISTURBING FACTOR IN HUMAN AFFAIRS,"
By James D. Holden. Sent post-paid for 2.lCc. Address Secretary Land Currency League. 231 Kittrodge Bldg. Denver. Colo.




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
"WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATF,'"'

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last analysis
the true method of issue depends upon what money
IS.

create bona fide money at will, it may arbitrarily
use what it creates in discharging its obligations.

We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender." we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the poiver to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can

Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.




The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual—those to whom it is
a necessity should he able to obtain it from the
fountain—head--the state complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is clear that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.

SCIENTIFIC MONEY.

Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.

Supplemental Communication No. 5.

Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:

Tn conclusion, we most respectfully suggest that
in the proposal to monetize land values--at an arbitrary valuation—by the certificate process --on
application of the owner —at cost of issue—we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BA LLI NGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read -THE DISTURBING FACTOR IN HUMAN AFFAIRS."
By James I). Holden. Sent post-paid for 25c. Address Secretary Land Currency League. 231 Kittredge Bldg. Denver. Colo.



The Land Currency League
to

In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
"WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?"

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last analysis
the true method of issue depends upon what money
IS.
We do not answer the question —"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender," we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can




create bona fide money at will, it may arbitrarily
use what it creates in discharging its obligations.
Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.
The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products--or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state--complying with necessary regulations.
_
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is cicar that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values --at an arbitrary valuation—by the certificate process ---on
application of the owner—at cost of issue—we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read "THE DISTURBING FACTOR IN HUMAN AFFAIRS."
By James
Holden. Sent post-paid for 25c. Address Secretary Land Currency League. 231 Kittredge Bldg. Denver. Colo.




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
"WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?"

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last analysis
the true method of issue depends upon what money
Is.
We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying-, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender." we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issued by thestate
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositi4ns. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can



create bona fide money at will, it may arbitrarily
use what it creates in discharging its obligations.
Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well s his other
rights, should be clearly defined in the written law.
The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state- -complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is clear that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market-,--how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values--at an arbitrary valuation—by the certificate process---on
application of the owner—at cost of issue--we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read “THE DISTURBING FACTOR IN HUMAN AFFAIRS."
By James D. Holden. Sent post-paid for 25c. Address Secretary Land Currency League. 231 Kittredge Bldg. Denver. Colo,




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer.,
at this time, is:
'WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?'

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last analysis
the true method of issue depends upon what money
IS.

create bona fide money at will, it may arbitrarily
use what it creates in discharging its obligations.

We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, 'Sit is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender," we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."

Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the-two methods of issue first enumerated, and vindicates the third. Obv iously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.

For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. , All ex istingmoney was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are•separate and distinct functions, or duties.
It by no means follows that, because the state can




The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should he at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state—complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production. it is cicar that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right ti demand
and receive.it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should 'be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values-- at an arbitrary valuation by the certificate process -on
application of the owner—at cost of issue—we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read -THE DISTURBING FACTOR IN HUMAN AFFAIRS."
By James I). Holden. Sent post-paid for 25c. Address Secretary Land Currency League. 231 Kittredge Bldg. Denver. Colo,




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer.,
at this time, is:
"WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?'

I. Should it be "paid ii,ato circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
•
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensi hie:

It will not be denied that in the last analysis
the true method of issue depends upon what money
IS.

create bona fide money at will, it may arbitrarily
use what it creates in discharging its obligations.

We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender," we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."

Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent .upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obv iously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.

For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can




The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is cicar that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market-- how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values-- at an arbitrary valuation by the certificate process -on
application of the owner—at cost of issue--we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October. 1909.
Read -THE DISTURBING FACTOR IN HUMAN AFFAIRS,"
By James I). Holden. Sent post-paid for 25e. Address Secretary Land Currency League. 231 Kittredoze Bldg. Denver. Colo.




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

lion. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
"WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?"

I. Should it he "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last analysis
the true method of issue depends upon what money
IS.

create bona fide money at will, it. may arbitrarily
use what it creates in discharging its obligations.

We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by say`Sit is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
En common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender," we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can

Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.




The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to. the wealth-producer. If for any
reason this essential cannot he readily obtained in
the market in exchange for products—or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state—complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is cicar that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values at an ar
bitrary valuation—by the certificate process —on
application of the owner—at cost of issue— we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read -THE DISTURBING FACTOR IN HUMAN AFFAIRS."
By James D. Holden. Sent post-paid for 25e. Address Secretary Land Currency League, 231 Kittredge Bldg. Denver. Col ).
!




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reforme;,
at this time, is:
"WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?"

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last analysis
the true method df issue depends upon what money
IS.
We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender." we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can




create bona fide money at will, it may arbitrarily
use what it creates in discharging its obligations.
Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.
The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head -. the state—complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is clear that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth at simply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values -at an arbitrary valuation by the certificate process —on
application of the owner— at cost of issue--we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. RICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read THE DISTURBING FACTOR IN HUMAN AFFAIRS."
By James D. Holden. Sent post-paid for 25e. Address Secretary Land Currency League. 231 Kittredge Bldg. Denver. Cob,




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Robit. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
'WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?"

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last analysis
the true method of issue depends upon what money
IS.

create bona fide money at will, it may arbitrarily
use what it creates in discharging its obligations.

We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we. define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender." we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."

Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.

For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot he
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The .state, it is true, has the power to create
and issue legal money without reference to ,property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can




The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state--complying with necessary regulations.
Nothing is more certain than that our financial
ills are (hie to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is cicar that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.

SCIENTIFIC MONEY.

Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.

Supplemental Communication No. 5.

Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:

In conclusion, we most respectfully suggest that
in the proposal to monetize land values -at an arbitrary valuation—by the certificate process— on
application of the owner—at cost of issue--we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October. 1909.
Read -THE DISTURBING FACTOR IN HUMAN AFFAIRS."
By James D. Holden. Sent post-paid for 25c. Address Secretary Land Currency League, 211 Kittredge Bldg. Denver. Colo,




The Land Currency League
to

•

In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
"WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?"

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last analysis
the true method of issue depends upon what money
IS.

create bona fide money at will, it may arbitrarily
use what it creates in discharging its obligations.

We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender," we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its uower to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can

Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.




The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual--those to whom it is
a necessity should be able to obtain it from the
fountain—head----the state complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the,
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is clear that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values—at an arbitrary valuation—by the certificate process on
application of the owner—at cost of issue—we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
•
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read -THE DISTURBING FACTOR IN HUMAN AFFAIRS."
By James D. Holden. Sent post-paid for 25c. Address Secretary Land Currency League. 231 Kittredge Bldg. Denver. Colo.




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
"WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?"
I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?

II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

IL will not be denied, that in the last ahalysis
the true method of issue depends upon what money
IS
We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender." we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth,"
For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state foe commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can




create bona fide money at will, it may arbitrarily
use what it creates in discharging its obligations.
Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.
The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen indepenthe stock of legal
dent of those who may own.
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state—complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is clear that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of Our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values--at an arbitrary valuation--by the certifi.ate process---on
applic•atioil
owtieL --at ct of issueare
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read THE DISTURBING FACTOR IN HUMAN AFFAIRS,"
By James D. Holden. Sent post-paid for 25c. Address Secretary Land Currency League, 231 Kittredge Bldg. Denver. Colo,




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Rob't. W. Bonyngc.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
"WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?"
I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?

II. Should it be "loaned to the people" on
pledge of security, by "government hanks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last analysis
the true method of issue depends upon what money
IS.
We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender," we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can




create bona fide monyy at will, it may arbitrarily
use what it creates in discharging its obligations.
Since money is a necessity to the individual, it
is evident that a system of issue cannot he scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.
The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products--or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state—complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is char that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values- -at an arbitrary valuation—by the certificate process - on
application of tho owner-at,cost; of issue -we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BA LLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read "THE DISTURBING FACTOR IN HUMAN AFFAIRS,"
By James D. Holden. Sent post-paid for 25c. Address Secretary Land Currency League. 231 Kittredge Bldg. Denver. Colo,




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
'WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF'
MONEY BY THE STATE?'

I. Should it be "paid into circulation" for
public improvements, for extingiiishing the public
debt, and ft,r defraying the expennes of the national government?
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last analysis
the true method of issue depends upon what money
IS.
We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, 'Sit is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender." we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal nieney cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property: but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can




create bona fide mone,' at will, it may arbitrarily
use what it creates ir discharging its obligations.
Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. ObN.iously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.
The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head--the state complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is clear that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values--at an arbitrary valuation—by the certificate process —On
application of the owner--at cost of issue—we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD W.OLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read -THE DISTURBING FACTOR IN HUMAN AFFAIRS,"
By James I). Holden. Sent post-paid for 26c. Address Secretary Land Currency League. 231 Kittredge Bldg. Denver. Colo,




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Lund
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
'WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?'
1. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expert of 6a.- national government?

II. Should it be "loaned to the people" on
pledge of security, by "government hanks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We otter the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last analysis
the true method of issue depends upon what money
IS.
We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender," we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and 5enerically defined, money
is "11 legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All exiting
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can




create bona fide money at will, it may arbitrarily
use what it creates i!) discharging its obligations.
Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.
The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state complying with necessary regulations.
Nothing is more certain than that our finnncia!
iiis are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is clear that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values-- at an arbitrary valuation—by the certificate process --on
application of the owner— at cost of issue—we are
proposing Isk,•• your thoughtful consideration a fiscal:
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. RICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read -THE DISTURBING FACTOR IN HUMAN AFFAIRS,"
By James D. Holden. Sent post-paid for 25e. Address Secretary Land Currency League. 231 Kittredge Bldg. Denver. Colo.




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
"WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?"

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national i. overinilent?
;
,
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
•
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last analysis
the true method of issue depends upon what money
IS.
We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "It is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender." we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
arid issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relatioanship between the power df the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can




create bona fide money at will, it may arbitrarily
use what it creates in discharging its obligations.
Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth; alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obv iously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.
The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state- -complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is char that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market--how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values at an arbitrary valuation—by the certificate process---on
appikation of the owiter—at cost of issiie—we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read -THE DISTURBING FACTOR IN HUMAN AFFAIRS,"
By James D. Holden. Sent post-paid for 25c. Address Secretary Land Currency League. VI Kittredge Bldg. Denver. Colo,




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. 'Feller.
Hon. Roth. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
'WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?"

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national go. -frrimei:t?
.
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will .not be denied that in the last analysis
the true method of issue depends upon what money
IS.

create bona fide money at will, it may arbitrarily
use what it creates in discharging its obligations.

We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth:" If to this popular definition we prefix
the compound word "legal-tender," we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money w us issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can

Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.




The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state- complying with necessary regulations.
Nothing is more certaan than that our financial
Ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is cicar that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, And the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values- at an arbitrary valuation—by the certificate process - on
application of the owner --at cost of issue--we are
proposing.for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientifif- money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read "THE DISTURBING FACTOR IN HUMAN AFFAIRS."
By James D. Holden. Sent post-paid for 25c. Address Secretary Land Currency League. 231 Kittredge Bldg. Denver. Colo.




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, sand the currency reformer,
at this time, is:
"WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?"

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pledgc. of security, tcy "government banks." al
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last analysis
the true method of issue depends upon what money
IS.

create bona fide money at will, it may arbitrarily
use what it creates in discharging its obligations.

We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender," we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to.a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can

Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.




The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution 45f product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state -complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that coo small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is cicar tht no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values—at an arbitrary valuation— by the certificate process - on
application of the owner—at cost of issue—we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of nci-ritifie money.
Very Respectfully.
CHARLES M. RICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read -THE DISTURBING FACTOR IN HUMAN AFFAIR
S,"
By James D. Hoiden. Sent post-paid for 25c. Address
tary Land Currency League, 231 Kittredge Bldg. Denver. SecreColo,




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer.,
at this time, is:
"WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?"

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pierige of seeurity, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

it will not be denied that in the last anaiysis
the true method of issue depends upon what money
IS.
We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender," wti have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. Al! existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can




create bona fide mone• at will, it may arbitrarily
use what it creates in discharging its obligations.
Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.
The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is clear that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How c.an the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values- at an arbitrary valuation—by the certificate process -on
application of the owner--at cost of issue—we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read -THE DISTURBING FACTOR IN HUMAN AFFAIRS."
By James D. Holden. Sent post-paid for 25c. Address Secretary Land Currency League, 231 Kittredge Bldg. Denver. Colo,




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
"WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?"

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
Should it he "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last analysis
the true method of issue depends upon what money
Is.
We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender." we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right, to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All oxisting
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can




create bona fide morwy at will, it may arbitrarily
use what it creates in discharging its obligations.
Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well as his other.
rights, should be clearly defined in the written law.
The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products--or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state---complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is cicar that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values- -at an arbitrary valuation—by the certificate process --on
application of the owner—at cost of issue—we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read -THE DISTURBING FACTOR IN HUMAN AFFAIRS,"
By James D. Holden. Sent post-paid for 25c. Address Secretary Land Currency League. 231 Kittredge Bldg. Denver. Colo.




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
"WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?"

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the pepple" on
pledge of serurity, by "government hank," at 14
nominal charge?
•
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last analysis
the true method of issue depends upon what money
IS.

create bona fide money at will, it may arbitrarily
use what it creates in discharging its obligations.

We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender." we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tendcr representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but.its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can

Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obv iously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.




The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who May own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is clear that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply -one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values—at an arbitrary valuation—by the certificate process--on
application of the owner—at cost of issue—we are
proposing for your thoughtful consideration a tisCal
system which responds to the every requirement
of scientific money.
Very Respectfully
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read THE DISTURBING FACTOR IN HUMAN AFFAIRS."
By James D. Holden. Sent post-paid for 25c. Address Secretary Land Currency League. 231 Kittredge Bldg. Denver. Colo.




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
'WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?'

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pledge of security, by "frovernmenL banks," at a
nominal charge?
111. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It vviii not be denied that in the last analysis
the true method of issue depends upon what money
IS.
We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, `Sit is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender," we have a
comprehensive definition indicating its primary
character—that of an 'authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can




create bona fide mont v at will, it may arbitrarily
use what it creates in discharging its obligations.
Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.
The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
- reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual—th,ose to whom it is
a necessity should be able to obtain it from the
fountain—head—the state complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency eepresentation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity suffieient to engage
our full powers of production, it is cle ar that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.

SCIENTIFIC MONEY.

Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.

Supplemental Communication No. 5.

Since money commands individual wealth in
market-how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.

Hon. Henry M. Teller.
Hon. Robit. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:

In conclusion, we most respectfully suggest that
in the proposal to monetize land values-at an arbitrary valuation-by the certificate process-on
application of the owner- at cost of issue-we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requir.ment
of scientific moliey.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read -THE DISTURBING F'ACTOR IN HUMAN AFFAIRS,"
By James D. Holden. Sent post-paid for 25c. Address Secretary Land Currency League, 231 Kittredge Bldg. Denver. Colo.




The Land Currency League
to

In the opinion of the members of the Lund
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
"WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?"

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
Ii. Should it be "loaned w the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last analysis
the true method of issue depends upon what money
IS.
We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender." we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issue by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
,money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property ;but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can




create bona fide mon,'y at will, it may arbitrarily
use what it creates ill discharging its obligations.
Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.
The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state- -complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is elcar that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.

SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
'WHAT

In conclusion, we most respectfully suggest that
in the proposal to monetize land values at an arbitrary valuation--by the certificate process on
application of the owner—at cost of issue--we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read -THE DISTURBING FACTOR IN HUMAN AFFAIRS."
By James I). Holden. Sent post-paid for 2hc. Address Secretary Land Currency League. 251 Kittredge Bldg. Denver. Colo.




tINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?"

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

it will not be denied that in the last, analysis
the true method of issue depends upon what money
IS.

create bona fide money at will, it may arbitrarily
use what it creates in discharging its obligations.

We do not answer the question —"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender," we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."

Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.

For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-t ners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
1-lence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can




The conclusive reason why the plan of issue we
suggest is•superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should he at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state--complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is clear that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market--how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values -at an arbitrary valuation--by the certificate process--on
application of the owner- at cost of issue—we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
•
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read -THE DISTURBING FACTOR IN HUMAN AFFAIRS,"
By James D. Holden. Sent post-paid for 215c. Address Secretary Land Currency League. 231 Kittredge Bldg. Denver. Colo,




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
'WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?"

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last alalysis
the true method of issue depends upon what money
IS.

create. bona fide money at will, it may arbitrarily
use what it creates in discharging its obligations.

We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, —it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender." we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
[fence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can

Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.




The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products ---or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state - complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And If under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage,
our full powers of production, it is clear that. no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize lapd values- at an arbitrary valuation—by the certificate process on
application of the owner at cost of issue we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD W()LFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read -THE DISTURBING FACTOR IN HUMAN AFFAIRS,"
By James D. Holden. Sent post-paid for 25c. Address Secretary Land Currency League, 231 Kittredge Bldg. Denver. Colo,




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
"WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?"

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenges of the national government?
II. Should it be "loaned to' the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, abort', is scientific and
defensible:

It will not be denied tha
t in the last ai aly
the true method of iss
ue depends upon what mo sis
IS.
ney
We do not answ
money?" by replying, er the question—"what is
"it
This answer only explai is a creation of law."
ns how it is brought int
existence. Nor do
o
ing, "it is a mediumwe define its character by saysimply defines one of of exchange." This reply
money acts as a mediits three functions. In fact,
um of exchange in a sec
capacity.
ondary
What then is money?
In common parlan
wealth." If to thisce, it is "a representative of
popular definition we pre
the compound word
"legal-tender," we havefix
comprehensive definitio
a
character—that of an n indicating its primary
authenticated debt-paying
device. Concisely an
is "a legal-tender repd generically defined, money
resentative of wealth."
For the reason that it
is an artificial representative of wealth, money
should be issued by the
state
as such. It should be
issued to wealth-owners,
on
application, for the rea
son that none but wea
lthowners can be entitled
to a wealth representati
ve.
They alone have earned
the right to demand
such
a symbol from the
state for commercial
uses.
Hence a scientific issue
of legal money cannot
be
disassociated from indivi
dual wealth. All existi
ng
money was issued in acc
ordance with this princi
ple.
The state, it is true,
has the power to cre
ate
and issue legal money
without reference to pro
perty; but its power to do,
and its duty is the premis
es,
are essentially differ
ent propositions. Obv
iously
there is no relationship
between the power of
the
state to create money,
and the act of disbur
sing it.
They are separate and dis
tinct functions, or dut
ies.
It by no means follows
that, because the state
can




create bona fide money
at will, it may arbitrarily
use what it creates in dis
charging its obligations.
Since money is a necess
ity to the individual, it
is evident that a syst
em of issue cannot be scientific which makes the
quantity dependent upon the
discretion of public
officials. This truth, alo
ne,
invalidates the two me
thods of issue first enumer
ated, and vindicates
the third. Obviously the
monetary rights of the
citizen, as well as his other
rights, should be clearl
y defined in the written law
.
The conclusive reason wh
y the plan of issue we
suggest is superior to all
others, is that it is the onl
y
defensible method of ma
king the citizen independent of those who ma
y own the stock of leg
al
money. A sufficiency bei
ng essential to a just distribution of product, mo
ney should be at all tim
es
accessible to the wea
lth-producer. If for an
y
reason this essential cann
ot be readily obtained in
the market in exchange
for products—or free from
the exactions of the indivi
dual—those to whom it is
a necessity should be abl
e to obtain it from the
fountain—head—the sta
te- -complying with necessary regulations.
Nothing is more certain th
an that our financial
ills are due to the fact tha
t too small a percentage
of individual wealth is giv
en currency representation
in the circulating medi
um. And if under the
measure we suggest, lan
d owners should call ne
w
money into existence in qua
ntity sufficient to engage
our full powers of pro
duction, it is cicar that no
other source of supply
would be necessary. The
imperative need is a SU
FFICIENCY, and the pro
posal to confine the iss
ue of such a volume to the
owners of our most stable
, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values--at an arbitrary valuation—by the certificate process on
application of the owner— at cost of issue--we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read THE DISTURBING FACTOR IN HUMAN AFFAIRS,"
By James I). Bohlen. Sent post-paid for 25e. Address Secretary Land Currency League, 231 Kittredge Bldg. Denver. Colo,




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Roth. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
thenancial student, and the currency reformer,
at t 's time, is:

4

"WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?"

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pledge of security, by "government hanks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last analysis
the true method of issue depends upon what moncy
IS.
We do not answer the questioii—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender," we have
a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to. demand such
a symbol from the state for comm ercial uses.
.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to proper
ty; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can




create bona fide money at will, it may arbitrarily
use what it creates in discharging its obligations.
Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obviously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.
The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the' wealth-producer. If for any
reason this essential cannot he readily obtained in
the market in exchange for products—or free from
the exactions of the individual--those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state----complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is clear that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.
Because a currency 'representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests qf the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values- - at an arbitrary valuation— by the certificate process -on
application of the owner—at cost of issue—we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BIC,E.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read -THE DISTURBING FACTOR IN HUMAN AFFAIRS."
liy James D. Holden. Sent post-paid for 2bc. Address Secretary Land Currency League. 231 Kittredge Bldg. Denver. C4.,lo.




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M.'feller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
"WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF'
MONEY BY THE STATE?"
I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?

II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last a utlysis
the true method of issue depends upon what money
IS.
We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender." we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.
The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can




create bona fide money at will, it may arbitrarily
use what it creates in discharging its obligations.
Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obv iously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the. written law.
The conclusive reason why the plan of issue we
suggest is superior to all others, is, that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head--the state - complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is clear that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

diistributed form of wealth is simply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values- at an arbitrary valuation—by the certificate process - on
application of the owner--at cost of issue—we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. BICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read -THE DISTURBING FACTOR IN HUMAN AFFAIRS
."
By James D. Holden. Sent post-paid for 25r. Address
Secretary Land Currency League. 231 Kittredge Bldg. Denver. Colo,




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. 'Feller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Ourrency League, the vital question confronting
the financial student, and the currency reformer,
at this time, is:
'WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?'

I. Should it he "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last analysis
the true method of issue depends upon what money
IS.

create bona fide mom,' at will, it may arbitrarily
use what it creates i discharging its obligations.

We do not answer the question—"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender." we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
•
• For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.

Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obv iously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.

The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can




The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in exchange for products—or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state complying with necessary regulations.
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is clear that no
other source of supply would be necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely

distributed form of wealth is simply one of expediency, safety and economy.
Because a currency representative is essential
to the welfare of the producer, his right to demand
and receive it on application should be recognized
by the state, because, in complex society, his needs
cannot be otherwise logically and scientifically
supplied.
Since money commands individual wealth in
market—how can those whose wealth it commands
be protected if the equivalent may be issued by the
state otherwise than as a representative currency?
How can the interests of the producer be adequately protected if this potent agent may be "paid into
circulation" at the pleasure of public officials? Obviously there should be a natural limit to the
volume; and the official issue should be scrupulously
guarded by scientific, equitable and inflexible
rules.
In conclusion, we most respectfully suggest that
in the proposal to monetize land values-- at an arbitrary valuation— by the certificate process--on
application of the owner—at cost of issue—we are
proposing for your thoughtful consideration a fiscal
system which responds to the every requirement
of scientific money.
Very Respectfully.
CHARLES M. RICE.
WEBSTER BALLINGER.
RICHARD WOLFE.
JAMES D. HOLDEN.
Committee.
Denver, Colo., October 1909.
Read THE DISTURBING FACTOR IN HUMAN AFFAIRS."
By James D. Holden. Sent post-paid for 25c. Address Secretary land Currency League, 231 Kittredge Bldg. Denver. Colo,




SCIENTIFIC MONEY.
Supplemental Communication No. 5.
The Land Currency League
to

Hon. Henry M. Teller.
Hon. Rob't. W. Bonynge.
Colorado Members of the National Monetary
Commission.
Gentlemen:
In the opinion of the members of the Land
Currency League, the vital question confronting
the financial student, and the currency reformer.
at this time, is:
"WHAT PRINCIPLE SHOULD GOVERN THE ISSUE OF
MONEY BY THE STATE?'

I. Should it be "paid into circulation" for
public improvements, for extinguishing the public
debt, and for defraying the expenses of the national government?
II. Should it be "loaned to the people" on
pledge of security, by "government banks," at a
nominal charge?
III. Or should a sufficient volume of representative currency be called into existence by the
owners of such values as the state may monetize
with absolute safety by the certificate process?
We offer the following argument is support of
the proposition that of the three methods of issue
enumerated, the last named, alone, is scientific and
defensible:

It will not be denied that in the last analysis
the true method of issue depends upon what money
IS.

create bona fide mcney at will, it may arbitrarily
use what it creates in discharging its obligations.

We do not answer the question —"what is
money?" by replying, "it is a creation of law."
This answer only explains how it is brought into
existence. Nor do we define its character by saying, "it is a medium of exchange." This reply
simply defines one of its three functions. In fact,
money acts as a medium of exchange in a secondary
capacity.
What then is money?
In common parlance, it is "a representative of
wealth." If to this popular definition we prefix
the compound word "legal-tender," we have a
comprehensive definition indicating its primary
character—that of an authenticated debt-paying
device. Concisely and generically defined, money
is "a legal-tender representative of wealth."
For the reason that it is an artificial representative of wealth, money should be issued by the state
as such. It should be issued to wealth-owners, on
application, for the reason that none but wealthowners can be entitled to a wealth representative.
They alone have earned the right to demand such
a symbol from the state for commercial uses.
Hence a scientific issue of legal money cannot be
disassociated from individual wealth. All existing
money was issued in accordance with this principle.

Since money is a necessity to the individual, it
is evident that a system of issue cannot be scientific which makes the quantity dependent upon the
discretion of public officials. This truth, alone,
invalidates the two methods of issue first enumerated, and vindicates the third. Obv iously the
monetary rights of the citizen, as well as his other
rights, should be clearly defined in the written law.

The state, it is true, has the power to create
and issue legal money without reference to property; but its power to do, and its duty is the premises,
are essentially different propositions. Obviously
there is no relationship between the power of the
state to create money, and the act of disbursing it.
They are separate and distinct functions, or duties.
It by no means follows that, because the state can




The conclusive reason why the plan of issue we
suggest is superior to all others, is that it is the only
defensible method of making the citizen independent of those who may own the stock of legal
money. A sufficiency being essential to a just distribution of product, money should be at all times
accessible to the wealth-producer. If for any
reason this essential cannot be readily obtained in
the market in excharge for products—or free from
the exactions of the individual—those to whom it is
a necessity should be able to obtain it from the
fountain—head—the state—complying with necessary regulations..
Nothing is more certain than that our financial
ills are due to the fact that too small a percentage
of individual wealth is given currency representation
in the circulating medium. And if under the
measure we suggest, land owners should call new
money into existence in quantity sufficient to engage
our full powers of production, it is cicar thrit no
other source of supply would he necessary. The
imperative need is a SUFFICIENCY, and the proposal to confine the issue of such a volume to the
owners of our most stable, permanent and widely


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102